LO4 23. Cash Flow Identity. 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. 2014 Income Statement Sales Cost of goods sold Selling & administrative Depreciation EBIT Interest W EBT Taxes Net income Dividends Addition to retained earnings S621,720 334,427 137,206 60,033 $ 90,054 21,226 $ 68,828 27,531 $ 41,297 $ 15,600 $ 25,697 Cash Accounts receivable Inventory Current assets Net fixed assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2013 $ 14,652 Accounts payable 20,893 Notes payable 15,173 Current liabilities $ 50,718 Long-term debt $378,869 Owners' equity Total liabilities and $429,587 owners' equity $ 10,535 15,858 $ 26,393 $150,500 $252,694 Total assets $429,587 Cash Accounts receivable Inventory Current assets Net fixed assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2014 $ 15,737 Accounts payable 23,209 Notes payable 25,029 Current liabilities $ 63,975 Long-term debt $446,942 Owners' equity Total liabilities and $510,917 owners' equity $ 11,563 18,113 $ 29,676 $167,200 $314,041 Total assets $510,917 ma