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Comparative balance sheets and an income statement for 2008 are presented below for Nroklesah Company.

Comparative balance sheets and an income statement for 2008 are presented below for Nroklesah Company. Nroklesah Company Comparative Balance Sheets and Income Statement For the Years 2007 and 2008 BALANCE SHEETS ASSETS Year 2008 Year 2007 respectively: Cash 200 185 Accounts receivable 350 290 Allowance for bad debts (45) (25) Inventory 260 135 Land 600 500 Buildings 295 250 Accumulated depreciation-buildings (65) (80) Total assets 1,595 1,255 Liabilities & Owners' Equity LIABILITIES Accounts payable 400 305 Wages payable 70 67 Dividends payable 30 47 Taxes payable 50 46 Long-term Bonds payable 100 100 Discount on bonds payable (8) (10) Total liabilities: 642 555 Owners' Equity Common stock 650 500 Retained earnings 303 200 Total owners' equity 953 700 Total liabilities & owners' equity 1,595 1,255 INCOME STATEMENT (2008) Revenue Cost of goods sold 1,200 Gross margin 750 450 Operating expenses Wage expense 200 Depreciation expense 30 Bad debt expense 20 Bond interest expense 10 Total operating expenses 260 Net operating income 290 Gain on sale of building 40 Net income before tax 230 Income tax 69 Net income after tax 161 Additional information 1. There were no write-offs of delinquent accounts during the year. 2. A building was sold during the year for $80. Required Prepare a cash flow statement for 2008 with clear documentation (i.e., show your work) for each section of the statement. Use either the direct or the indirect method.

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