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Homework 2 Statement of Cash flowsConstruct a cash flow statement for XYZ Company using thefollowing information XYZCOMPANY BALANCESHEET DECEMBER31, 2006, 2007 Assets Liab+ equity 2006 2007 20062007Cash 120 150 Acc.payable 200 150Mkt.Sec 80 100 Notespayable 300 250 Acc.Rec 360 200 otherliab. 100 150Inventory 340 600currentassets 900 1050 Currentliab. 600 550GrossFA 22002400 Long termdebt 1000 1200Acc.Dep 500 600 Commonstock 400 250Net fixed asset 17001800 Retainedearnings 600 850Total assets 26002850 Totalliab.+equity 2600 2850The firm’s EAT for 2007 was 400