Britton String Corp. manufactures specialty strings for musical instruments and tennis racquets. Its most recent sales were $$920$ million; operating costs $($excluding depreciation$)$ were equal to $85\%$ of sales; net fixed assets were $$300$ million; depreciation amounted to $11\%$ of net fixed assets; interest expenses were $$25$ million; the state$-$plus$-$federal 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.

Britton String Corp.: Income Statement for Year Ending

December $31,2022($Millions of Dollars$)$

$2022$

Sales $ fill in the blank $2$

Operating costs excluding depreciation fill in the blank $3$

EBITDA $ fill in the blank $4$

Depreciation fill in the blank $5$

EBIT $ fill in the blank $6$

Interest expense fill in the blank $7$

EBT $ fill in the blank $8$

Taxes $(25\%)$ fill in the blank $9$

Net income $ fill in the blank $10$

Common dividends $ fill in the blank $11$

Addition to retained earnings $ fill in the blank $12$

Britton issued $$45$ million of new common stock in the most recent year. Using this information and the results from part a$,$ fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity.

Britton String Corp.: Partial Balance Sheet as of December $31$

$($Millions of Dollars$)$

$2022$

Common stock $ fill in the blank $13$

Retained earnings fill in the blank $14$

Total common equity $ fill in the blank $15$

Total liabilities and equity $ fill in the blank $16$

Construct the statement of cash flows for $2022.$

Britton String Corp.: Statement of Cash Flows for $2022$

$($Millions of Dollars$)$

$2022$

Operating Activities

Net income $ fill in the blank $17$

Noncash adjustments

Depreciation fill in the blank $18$

Working capital adjustments

Due to change in accounts receivable fill in the blank $19$

Due to change in inventories fill in the blank $20$

Due to change in accounts payable fill in the blank $21$

Due to change in accruals fill in the blank $22$

Net cash provided $($used$)$ by operating activities $ fill in the blank $23$

Investing Activities

Cash used to acquire fixed assets $ fill in the blank $24$

Due to change in short$-$term investments fill in the blank $25$

Net cash provided $($used$)$ by investing activities $ fill in the blank $26$

Financing Activities

Due to change in notes payable $ fill in the blank $27$

Due to change in long$-$term debt fill in the blank $28$

Due to change in common stock fill in the blank $29$

Payment of common dividends fill in the blank $30$

Net cash provided $($used$)$ by financing activities $ fill in the blank $31$

Summary

Net increase$/$decrease in cash $ fill in the blank $32$

Cash at the beginning of the year fill in the blank $33$

Cash at the end of the year $ fill in the blank $34$