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Consider the following income statement for the Kerr Company for the year ended December 31, 2021 and the balance sheets for December 31, 2020 and
Consider the following income statement for the Kerr Company for the year ended December 31, 2021 and the balance sheets for December 31, 2020 and 2021. Based on these statements, construct the cash flow identity AND provide a brief analysis of what Kerr's cash flows are indicating. KERR COMPANY Balance Sheets as of December 31, 2020 and 2021 Cash Marketable securities Accounts receivable Inventory Net Fixed Assets 2020 2021 S 141 $ 184 56 32 1,025 1.167 918 963 6.770 7,087 Accounts Payable Short-term notes payable Long-term Debt Common Stock Retained Earnings 2020 2021 $ 679 $ 856 315 270 2,869 2,956 456 610 4,591 4,741 Total Assets $8.910 9.433 Total Liabilities & Equity $8.910 $2,433 KERR COMPANY 2021 Income Statement Sales Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and Taxes Less: Interest Paid Taxable Income Taxes (34%) Net Income $3,990 2.137 1.018 835 267 568 193 S 375
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