Response to the following problem:
Ritter Corporation accountants prepared the following financial statements for year-end 2010:
a. Explain the change in cash during 2010.
b. Determine the change in net working capital in 2010.
c. Determine the cash flow generated by the firms assets during 2010.
Income Statement 2010:
Revenue $600
Expenses 405
Depreciation 90
Net Income 105
Dividends 45
Balance Sheets December 31:
2010 2009
Assets :
Cash $ 50 $ 35
Other current assets 155 140
Net fixed assets 340 290
Total Assets $545 $465
Liabilities and Equity:
Accounts payable $85 $95
Long-term debt 135 105
Stockholders equity 325 265
Total liabilities and equity $545 $465