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Find the cash flow from investing activities for the year 2018 ABC Inc. Dec. 31 st Balance Sheets ($M) 2018 2017 Cash 200 240 Marketable

Find the cash flow from investing activities for the year 2018

ABC Inc. Dec. 31st Balance Sheets ($M)

2018

2017

Cash

200

240

Marketable securities (Short-term Investments)

0

160

Accounts receivable

2,000

1,520

Inventories

4,000

3,280

Total current assets

6,200

5,200

Net plant and equipment

8,000

6,800

Total Assets

14,200

12,000

Accounts payable

800

760

Notes payable

1,120

520

Accruals

1,200

1,120

Total current liabilities

3,120

2,400

Lon-term bonds

4,800

4,000

Total liabilities

7,920

6,400

Preferred stock

400

400

Common stock

2,000

2,000

Retained earnings

3,880

3,200

Total common equity

5,880

5,200

Total liabilities and equity

14,200

12,000

ABC Inc. Dec. 31st Income Statement ($M)

2018

2017

Net sales

20,000

19,040

Costs of goods sold

15,200

14,240

Depreciation

800

680

Other operating expenses

2,000

1,920

Earnings before interest and taxes (EBIT)

2,000

2,200

Less interest

480

400

Earnings before taxes

1,520

1,800

Taxes (40%)

608

720

Net Income

912

1080

Preferred dividends

32

32

Net income available to common stock holders

880

1,048

Additional information

Stock price per share ($)

108

192

Number of preferred shares

4,000,000

4,000,000

Number of common shares

200,000,000

200,000,000

Common dividends ($M)

200

192

Weighted average cost of capital (WACC)

10%

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