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a. Britton String Corp. manufactures specialty strings for musical instruments and tennis racquets. Its most recent sales were $880 million; operating costs (excluding depreciation) were
a. Britton String Corp. manufactures specialty strings for musical instruments and tennis racquets. Its most recent sales were $880 million; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $300 million; depreciation amounted to 10% of net fixed assets; interest expenses were $22 million; the state-plusfederal corporate tax rate was 25%; and it paid 40% of its net income out in dividends. Given this information, construct its income statement. Also calculate total dividends and the addition to retained earnings. Report all dollar figures in millions. The input information required for the problem is outlined in the "Key Input Data" section below. Using this data and the earnings, total common equity, and total liabilities and equity. Always check for balancing (these should be zero): c. Construct the statement of cash flows for the most recent year. Statement of Cash Flows (in thousands of dollars)
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