C. Construct the statement of cash flows for the most recent year. Using the first two photos as reference, complete the statement of cash flows as shown in the last photo.

2016 Key Input Data for Vanguard Pharmaceuticals (Thousands of dollars) Sales Revenue Expenses (excluding depreciation) as a percent of sales Net fixed assets Depr. as a % of net fixed assets Tax rate Interest expense Dividend Payout Ratio $910,000 80.8% $134,000 9.5% 38.0% $17,100 23.8% Vanguard Pharmaceuticals: Income Statement (Thousands of dollars) Sales Operating costs excluding depreciation EBITDA Depreciation (Vanguard has no amortization charges) EBIT Interest expense EBT Taxes Net income 2016 $910,000 $735,280 $174,720 $12,730 $161,990 $17,100 $144,890 $55,058 $89,832 Common dividends Addition to retained earnings $21,380 $68,452 Dollar value of common stock issued (in thousands of dollars) $10,000 Vanguard Industries December 31 Balance Sheets (in thousands of dollars) 2016 2015 Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets $69,312 11,400 108,470 38,450 $227,632 134,000 $361,632 $74,625 15,100 85,527 34,982 $210,234 42,436 $252,670 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $30,761 30,405 12,717 $73,883 80.263 $154,146 $100,000 107,486 $207,486 $361,632 $23,109 22,656 14,217 $59,982 63,914 $123,896 $90,000 38,774 $128,774 $252,670 Check for balancing (this should be zero): Statement of Cash Flows (in thousands of dollars) Operating Activities Net Income Adjustments: Noncash adjustment: Depreciation Due to changes in working capital: Due to change in accounts receivable Due to change in inventories Due to change in accounts payable Due to change in accruals Net cash provided (used) by operating activities Investing Activities Cash used to acquire gross fixed assets Due to change in short-term investments Net cash provided (used) by investing activities Financing Activities Due to change in notes payable Due to change in long-term debt Due to change in common stock Payment of common dividends Net cash provided (used) by financing activities Net increase/decrease in cash Add: Cash balance at the beginning of the year Cash balance at the end of the year Check: cash balance in statement of cash flows should equal the cash on balance sheets as shown here: $69,312