23. Cash Flow Identity. Graffiti Advertising, Inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company. Explain what each number means. 2016 Income Statement Sales Cost of goods sold Selling and administrative Depreciation EBIT Interest EBT Taxes Net income Dividends Addition to retained earnings $714,978 384,591 157,787 69,038 $103,562 24,410 $ 79,152 27,703 $ 51,449 $ 16,200 35,249 CHAPTER 2 Financial Statements, Taxes, and Cash Flow GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 Cash Accounts receivable Inventory Current assets Net fixed assets 16,849 24,027 17,449 $ 58,325 $435,670 Accounts payable Notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $ 12,115 18,237 $ 30,352 $173, 100 $290,543 Total assets $493,995 $493,995 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 Cash Accounts receivable Inventory Current assets Net fixed assets 18,098 26,690 28,783 $ 73,571 $513,980 Accounts payable Notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $ 13,297 20,830 $ 34,127 $ 192,300 $361,124 Total assets $587,551 $587,551