Use the balance sheet and income statement below to construct a statement of cash flows for 2022 for Clancy’s Dog Biscuit Corp. (LG 21-4)

Clancy’s Dog Biscuit Corporation Balance Sheet as of December 31, 2021 and 2022

(in millions of dollars)

2021 2022 2021 2022 Assets Liabilities & Equity Current assets: Current liabilities:

Cash and marketable securities $ 5 $ 5 Accrued wages and taxes $ 6 $ 10 Accounts receivable 19 20 Accounts 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 equipment $ 88 $106 Stockholders’ equity:
Preferred stock Less: Depreciation Net plant and equipment 11 15 (2 million shares) $ 2 $ 2 $ 77 $ 91 Common stock and paid-in surplus (5 million shares) 11 11 Other long-term assets 15 15 Retained earnings 45 57 Total $ 92 $106 Total $ 58 $ 70 Total assets $145 $167 Total liabilities and equity $145 $167 Clancy’s Dog Biscuit Corporation Income Statement for Years Ending December 31, 2021 and 2022 (in millions of dollars)
2021 2022 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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