ACC/545 Financial Reporting

Los Lobos, Inc Classified Balance Sheet as of 12/31/2007

Current Assets Cash Accounts receivable (Net of Allowance) Inventory Total Current Assets Long-Term Assets Property, Plant, & Equipment (Net of Accumulated Depreciation) Total Long-Term Assets Total Assets

$ 35,000 31,700 31,000 $ 97,700

$ 83,500 $ 83,500 181,200

Current Liabilities Accounts Payable Income Taxes Payable Current Portion of Long Term Debt Total Current Liabilities Long-Term Liabilities Deferred Income Taxes Bonds Payable net of Discount Total Long-Term Liabilities Total Liabilities Equity Common Stock Additional Paid-in Capital Retained Earnings Total Equity Total Liabilities & Equity

$ 25,000 21,000 12,000 $ 58,000

5,300 28,500 33,800 $ 91,800

$ 50,000 9,100 30,300 89,400 $ 181,200

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Los Lobos, Inc Statement of Cash FlowsDirect Method as of 12/31/2007

Operating Cash Flows Cash Sales Collections on A/R Purchases Wages Payments to Suppliers Tax Payments Interest Payments Total Cash flows from Operations Investing Cash Flows Purchases of Equipment Total Cash Flows from Investing Financing Activities Borrowings Repayment of Debt Sale of Stock Dividends Total Cash Flows from Financing Total Cash Flows

$72,600 477,900 (219,500) (150,700) (126,300) (27,800) (3,800) $22,400

$ (5,000) (5,000)

$ 30,000 (5,000) 11,600 (51,000) (14,400) $3,000

Beginning Balance of Cash Ending Balance of Cash

32,000 $35,000

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Reconcilliation of Net Income to Operating Cash Flows $ 5,100 (2,800) 16,000 9,500 (8,100) 700 1,500 500 $ 22,400

Net Income Change in A/R Change in Inventory Change in A/P Change in Taxes Payable Add non-cash Tax Add non-tax Depreciation Add non-cash bond amort Net Cash flows from Operations

Los Lobos, Inc Statement of Cash