Dynamic Systems has the following balance sheet for 2010 and 2011 in $M. The depreciation for 2011 is $310M, the marginal tax rate is 35% and net Income for 2011 is $450M.
Years 2010 2011 2010 2011
Cash $ 100 $ 125 Accounts Payable $ 200 $ 310
Acc Rec 600 800 Accrued Exp. 350 400
Inventory 550 600 Notes payable 450 350
Marketable Securities 150 190
Current Assets 1,400 1,715 Current Liabilities 1,000 1,060
Net Fixed Assets $1,000 $1,325 Long Term Debt 600 1,025
Common Equity 300 300
Retained earnings 500 655
Total Assets $2,400 $3,040 Total Liab.& Equ. $2,400 $3,040
Required: Prepare Statement of Cash Flows
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