You asked: “PROBLEM # 2 Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below. FULTON CORP.

You asked:”PROBLEM # 2Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below.FULTON CORP.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2008 AND 20072008 2007Cash $800 $600Investments 0 200Receivables 2,250 2,100Inventory 1,600 1,200Plant assets 1,600 1,200Accumulated depreciation (600) (455)$5,650 $4,845Accounts payable $750 $1,200Accrued liabilities 330 520Bonds payable 800 1,000Capital stock 1,500 1,400Retained earnings 2,270 725$5,650 $4,845FULTON COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2008Sales $15,200Cost of goods sold 10,400Gross profit 4,800Selling and administrative expenses 1,205Income from operations 3,595Other revenues and gainsLoss on sale of investments _ 50Income before income tax 3,545Income tax expense 1,400Net income 2,145Cash dividends 600Income retained in business $1,545Additional information:During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2008.InstructionsPrepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below.FULTON CORP.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2008 AND 2007 CashInvestmentsReceivablesInventoryPlant…