ELLWOOD HOUSE, INC.Statement of Cash Flows

For Year Ended December 31st, 2007Operating Activities

Net Income $42,000 Gain on Sale of Investment ($500)Depreciation Expense $13,550 $13,050

Net Cash Flow from Operating Activities $55,050 Investing Activities

Sale on Investment $15,500 Purchase of Land ($5,500)

Net Cash Flow from Investing Activities $10,000 Financing Activities

Dividends ($19,000)Issuance of Capital Stock $20,000 Bonds Payable Retired at Par ($10,000)

Net Cash Flow from Financing Activities ($9,000)Noncash Investing & Financing Activities

Purchase of Equipment for $32,000 in Exchange for $32,000 of BondsNet Increase in Cash $56,050 Cash, January 1, 2007 $10,000 Cash, December 31, 2007 $66,050