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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
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.
2021 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 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2020 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 $457,454 Owners' equity $305,824 Total assets $518,694 Total liabilities and owners' equity $ 518,694 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2021 Cash $19,003 Accounts payable $13,962 Accounts receivable 28,025 Notes payable 21,872 Inventory 30,222 Current liabilities $35,834 Current assets $77,250 Long-term debt $201,900 Net fixed assets $539,679 Owners' equity $ 379,195 Total assets $ 616,929 Total liabilities and owners' equity $616,929Step by Step Solution
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