1. Verify A = L+E using the balance sheet (B/S) prepared at the end of Fiscal Year 2008. Be specific with numbers. Repeat for the B/S prepared at the end of FY 2009.

2. Using the B/S prepared at the end of FY 2008 and FY 2009, compute the change in CASH that occurred during the FY 2009. Refer to the Statement of Cash Flows to disaggregate the change in CASH as cash flows from operating activities (CFO), cash flows from investing activities (CFI)and cash flows from financing activities (CFF). Is the amount in CFO a cash inflow or outflow? What about CFI and CFF? What do you infer from these amounts?

3. Using just the B/S and income statement (I/S), check whether TARGET declared anyDIVIDENDS during FY 2009 (Use the identity that relates change in RETAINED EARNINGSwith NET INCOME and NET DIVIDENDS and compute the amount of dividends declared).