4. Use the balance sheet and income statement below to construct a statement of cash flows for 2013 for Clancy’s Dog Biscuit Corp. ( LG 20- 4)

Clancy’s Dog Biscuit Corporation Balance Sheet as of December 31, 2012 and 2013

(in millions of dollars)

2012 2013 2012 2013 Assets Liabilities & Equity Current assets: Current liabilities:

Cash and Accrued marketable wages and securities $ 5 $ 5 taxes $ 6 $ 10 Accounts Accounts receivable 19 20 payable 15 16 Inventory 29 36 Notes payable 13 14 Total $ 53 $ 61 Total $ 34 $ 40 Fixed assets: Long-term debt: $ 53 $ 57 Gross plant and Stockholders’ equity:

equipment $ 88 $106 Preferred stock Less: Depreciation 11 15 (2 million Net plant shares) $ 2 $ 2 and equipment $ 77 $ 91 Common stock and paid-in surplus

(5 million shares) 11 11 Other long-term Retained assets 15 15 earnings 45 57 Total $ 92 $106 Total $ 58 $ 70 Total Total liabilities assets $145 $167 and equity $145 $167 Clancy’s Dog Biscuit Corporation Income Statement for Years Ending December 31, 2012 and 2013 (in millions of dollars)
2012 2013 Net sales $ 80 $ 76 Less: Cost of goods sold 39 44 Gross profits 41 32 Less: Depreciation and other operating expenses 4 4 Earnings before interest and taxes (EBIT) 37 28 Less: Interest 5 5 Earnings before taxes (EBT) 32 23 Less: Taxes 10 7 Net income $ 22 $ 16 Less: Preferred stock dividends $1 $ 1 Net income available to common stockholders 21 15 Less: Common stock dividends 3 3 Addition to retained earnings $ 18 $ 12