Income Statement For the Years Ended December 31, 2022 and 2021 $ in millions 2022 2021 Revenue Net sales Cost of merchandise sold Gross Profit 48,564 44,452 27,016 24,969 21,548 19,483 Operating Expenses Selling, general and administrative 7,850 7,182 Depreciation 1,772 1,010 Amortization 45 45 Operating income 11,881 11,246 Interest expense, net 276 235 Gain on sale of property & equip 750 350 Income before income taxes 12,355 11,361 Provision for income taxes 3,089 2,840 Net income 9,266.25 8,520.75 Current Assets Cash and cash equivalents Accounts Receivable, net Merchandise inventories Other current assets. H & K INC. Balance Sheet December 31, 2022 and 2021 Sin millions 2022 2021 17,787 9,839 3,412 2,010 3,576 4,029 333 326 25,108 16,204 Total Current Assets Long-Term Assets Property and equipment 13,405 11,995 Accumulated depreciaion (3,990) (3,220) Intangible assets, net of accumulated amortization 148 193 Total Long-Term Assets 9,563 8,968 Total Assets 34,671 25,172 Current Liabilities Accounts payable 1,308 1,276 Accrued liabilities 988 1,200 Income taxes payable 2,619 2,455 Current portion of long-term debt 125 99 Total Current Liabilities 5,040 5,030 Non-current Liabilities Long-term debt Total Liabilities Shareholders' Equity Common stock: .01 par value; 9,000 shares authorized; 380 and 370 shares issued & outstanding respectively Paid-in capital Treasury stock, at cost Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Additional Information: The company paid cash dividends of $300 in 2022. 4,699 4,525 9,739 9,555 4 4 3,618 3,018 (2,900) (2,649) 24,210 15,244 24,932 15,617 34,671 25.172 The company purchased treasury stock of $251 during 2022, and sold The company purchased $2.762 in equipment for cash during the year. In addition, equipment was sold for $1100 in cash; the equipment had a book value at the time of sale of $350. There were no purchases or sales of intangible assets. The company made payments of $150 on its debt obligations, and took an additional $350 in debt during the year. Statement of Cash Flows For the Year Ended December 31, 2022 USD ($) in Millions Current Ratio= Acid-Test Ratio= AR Turnover= Days Sales Uncollected= Inventory turnover= Days sales in Inventory = Total Asset Turnover = Debt to Equity= Times Interest Earned = 2022 Net Profit Margin= Return on Total Assets = Return on Stockholders Equity = Earnings per Share (EPS) = Assignment instructions are as follows: 1. Use the information in the provided Income Statement and Balance Sheet to create the 2022 Statement of Cash Flows for Inc. This should be created on the appropriate Tab of the Excel Workbook Template provided on Canvas. 2. Formulas: a. Use Excel to setup the Statement of Cash Flows by linking the values from the Income Statement and the Balance Sheet. b. Use Excel formulas to calculate all totals and sub-totals. 3. Complete the ratio calculations for 2022 on the appropriate tab using the Income Statement and Balance Sheet. All ratios should be linked back to your financial statements. 4. Save your Excel workbook Project3-your last name. (For example: Project3-Smith.xls). 5. Upload the completed assignment to Canvas using the link provided. GRADING RUBRIC: FORMATTING (15%) Statement of Cash Flow should be formatted and easy to read/follow. This includes: Properly underlined subtotals and grand totals. Consistency in formatting (i.e. if decimals are used, they should be consistent. Are dollar signs used consistently?) ACCURACY/COMPLETENESS (25%) The Statement of cash flows and ratios were completed by linking the cells back to the financial statements. STATEMENT OF CASH FLOWS (30%) All sub-totals and totals are accurately calculated (using Excel formulas). All sections of the statement are included and correctly subtotaled. The Statement matches the change in cash from the Balance Sheet. RATIOS (30%) All ratios are accurately calculated (using Excel formulas)