Preparing a Statement of Cash Flows

The following financial statements for Swale, LTD are provided:

Swale Limited

Income Statement

For the Year Ended December 31, 2000

Revenues:

Sales

$97,800

Interest revenue

1,300

$99,100

Expenses:

Cost of goods sold

56,500

Salary expense

19,000

Depreciation expense

3,000

Interest expense

1,500

Tax expense

2,500

82,500

Net Income

$ 16,600

Swale Limited

Balance Sheet

December 31

2000

1999

Cash

$35,600

$24,000

Accounts receivable

5,500

3,000

Inventory

21,000

11,000

Property, plant, and equipment (net)

21,500

20,000

Investments

12,000

0

Total assets

$95,600

$58,000

Accounts payable

$5,000

$2,000

Salaries payable

600

500

Short term debt

0

12,000

Long term debt

25,000

6,000

Common stock

36,000

25,100

Retained earnings

29,000

12,400

Total liabilities and shareholders’ equity

$95,600

$58,000

Required

Prepare a statement of cash flows.