Cash Flows - Ritter Corporation's accountants prepared the following financial statements for year-end 2010:
1. Explain the change in cash during 2010.
2. Determine the change in net working capital in 2010.
3. Determine the cash flow generated by the firm's assets during 2010.
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RITTER CORPORATION Income Statement 2010
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Revenue
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$600
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Expense
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405
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Depreciation
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90
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Net income
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$105
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Dividends
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$45
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RITTER CORPORATION Balance Sheet December 31
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2010
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2009
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Assets
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Cash
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$50
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$35
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Other current assets
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155
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140
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Net fixed assets
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340
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290
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Total assets
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$545
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$465
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Liabilities and Equity
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Account payable
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$85
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$95
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Long - term debt
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135
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105
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Stockholders" equity
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325
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265
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Total liabilities and equity
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$545
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$465
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