5. Galaxy Interiors 2011 Income Statement ($ in millions) Net sales $21,415 Cost of goods sold 16,408 Depreciation 1,611 Earnings before interest and taxes 3,396 Interest paid 1.282 Taxable income $ 2,114 Less: Taxes 740 Net income $ 1,374 Galaxy Interiors 2010 and 2011 Balance Sheets ($ in millions) Cash Accounts receivable Inventory Total Net fixed assets 2010 2011 $ 668 $ 297 1,611 1,527 3,848 2.942 $ 6127 $ 4.771 17489 174107 Accounts payable Notes payable Total Long-term debt Common stock Retained earnings Total liab. & equity 2010 2011 $1,694 $ 1,532 2.500 0 $4.194 S 1.532 9,800 10,650 7,500 7,000 2.122 2.696 $23.616 $21.878 Total assets $23,616 $21,878 What is the cash flow from assets for 2011? What is the cash flow to creditors for 2011? What is the cash flow to stockholders for 2011? 6. Discuss the difference between book values and market values and explain which one is more important to the financial manager and why. 7. It is commonly recommended that the managers of a firm compare the performance of their firm to that of its peers. Increasingly, this is becoming a more difficult task. Explain some of the reasons why comparisons of this type can frequently be either difficult to perform or produce misleading results