Graffiti Advertising, Inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company. Explain what each number means. 2019 Income Statement Sales $750,727 Cost of goods sold 430,821 Selling and administrative 165,676 Depreciation 72,489 EBIT $81,741 Interest 25,630 EBT $56,111 Taxes 14,028 Net income $42,083 Dividends $14,200 Addition to retained earnings 27,883 GR

AFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018 Cash $17,691 Accounts payable $12,721 Accounts receivable 25,228 Notes payable 19,149 Inventory 18,321 Current liabilities $31,870 Current assets $61,240 Long-term debt $181,000 Net fixed assets Total assets $457,454 $518,964 Owners equity Total liabilities and owners equity Ross, Stephen. Essentials of Corporate Finance (p. 46). McGraw-Hill Higher Education. Kindle Edition.