ABC Inc.

2019 Income Statement ($ in millions)

Net sales $1,384

Cost of goods sold 605

Depreciation 180

EBIT 599

Interest paid 70

Taxable income 529

Taxes (31%) 164

Net income $365

Addition to retained earnings $254

Dividends paid $111

ABC Inc.

12/31/18 and 12/31/19 Balance Sheet ($ in millions)

2018 2019 2018 2019

Cash $ 100 $ 121 Accounts payable $ 400 $ 350

Accounts rec. 350 425 Notes payable 390 370

Inventory 440 410 Total CL $ 790 $ 720

Total CA $ 890 $ 956 Long-term debt 500 550

Net fixed assets 1,556 1,704 Owner's equity

Common stock 600 580

Retained earnings 556 810

Total 1,156 1,390

Total assets $2,446 $2,660 Total liabilities $2,446 $2,660

33- What is the firm's cash flow from assets for 2019 ($ in millions)? [Please use the following formula: CFFA = Cash Flow to Creditors + Cash Flow to Stockholders]

A) $131 million

B) $151 million

C) $328 million

D) $615 million

E) None of the above