Use the balance sheet and income statement below to construct a statement of cash flows for 2019 for Clancy’s Dog Biscuit Corp. (LG 20-4)

Clancy’s Dog Biscuit Corporation Income Statement for Years Ending December 31, 2018 and 2019

(in millions of dollars)

2018 2019 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

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