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    Marstore Inc.: Statement of Cash Flows solve Balance Sheets

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    Presented below is the Statement of Cash Flows for Marstore, Inc., for the year ended December 31, 2007. Also shown is a partially completed comparative balance sheet as of December 31, 2007 and 2006. Complete the balance sheet.
    MARSTORE, INC.
    Statement of Cash Flows
    For the Year Ended December 31, 2007

    Cash flows from operating activities:
    Net Income......................................................$ 23, 000
    Add (deduct) items not affecting cash:
    Depreciation expense........................................6,000
    Decrease in accounts receivable.......................8,000
    Decrease in accounts payable..........................(6,000)
    Net cash provided by operating activities............ $31,000

    Cash flows from investing activities:
    Purchase of store fixtures................................. $(4,000)

    Cash flows from financing activities:
    Repayment of long-term debt..............................$(2,000)
    Payment of cash dividends on common stock.......(5,000)
    Net cash used by financing activities..................... $(7,000)
    Increase in cash for the year................................. $20,000

    MARSTORE, INC.
    Balance Sheets
    December 31, 2007 and 2006

    2007 2006 2007 2006
    Current assets:
    Cash................$37,000 $_______ Accounts payable..$_____ $18,000
    Accts receivable ______ 39,000 Long-term debt....... 18,000 ______
    Total current assets _____ ______ Total liabilities.......... ______ ______
    Store fixtures..... ______ $24,000 Common stock....... _______ $20,000
    Less: Accumulated Retained earnings.. ______ ______
    depreciation.... (13,000) _____ Total owners' equity ______ ______
    Net store fixtures.. _____ ______ Total liabilities and
    Total assets......... ______ ______ owners' equity.... ______ ______

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