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Consider the following financial statements for Smith Co. Balance Sheet 2019 2020 Assets Current assets Cash Account receivable Inventory Total Fixed assets Net plant and
Consider the following financial statements for Smith Co. Balance Sheet 2019 2020 Assets Current assets Cash Account receivable Inventory Total Fixed assets Net plant and equipment Total assets $5,000 30,000 40.000 $75,000 $6,500 $31,500 $42.000 $80,000 375,000 $450,000 $393,750 $473,750 Liabilities and Owners' Equity Current liabilities $50,000 25,000 $75,000 $85,000 $53,750 $26,250 $80,000 $89,250 Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Accumulated retained earnings Total Total liabilities and owners' equity $60,000 230,000 $290,000 $450,000 $63,000 241,500 $304,500 $473,750 Income Statement for 2020 Sales COGS Depreciation EBIT Interest EBT Taxes (45%) Net income $400,000 200,000 30.000 $170,000 15,000 $155,000 69,750 $85,250 Calculate the Cash Flow from Assets (CFFA). Does the CF identity hold
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