m1 Begin with the partial model in the file Ch06 P20 Build a Model.xlsx. The partial balance sheets of Britton String are shown here. Britton String Corp.: Partial Balance Sheets as of December 31 (Millions of Dollars) 2022 2021 Assets Cash and cash equivalents $102 $ 64 Short-term investments 54 52 Accounts receivable 100 130 Inventories 248 188 Total current assets $504 $434 Net fixed assets 300 268 Total assets $804 $702 Liabilities and Equity Accounts payable $ 79 $ 66 Accruals 47 54 Notes payable 16 29 Total current liabilities $142 $149 Long-term debt 203 168 Total liabilities $345 $317 Common stock ? 235 Retained earnings ? 150 Total common equity ? $385 Total liabilities and equity. ? $702 Total liabilities and equity $702 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any. Download spreadsheet Ch06 P20 Build a Model-05f4fc.xlsx a. Britton String Corp. manufactures specialty strings for musical instruments and tennis racquets. Its most recent sales were $860 million; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $300 million; depreciation amounted to 10% of net fixed assets; interest expenses were $19 million; the state-plus-federal corporate tax rate was 25%; and it paid 40% of its net income out in dividends. Given this information, construct its income statement. Also calculate total dividends and the addition to retained earnings. Britton String Corp.: Income Statement for Year Ending December 31, 2022 (Millions of Dollars) Sales Operating costs excluding depreciation EBITDA Depreciation EBIT Interest expense EBT Taxes (25%) Net income 2022 $ $ $ A-2 NE Net income Common dividends Addition to retained earnings $ $ b. Britton issued $38 million of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity. Britton String Corp.: Partial Balance Sheet as of December 31 (Millions of Dollars) Common stock Retained earnings Total common equity Total liabilities and equity c. Construct the statement of cash flows for 2022. $ $ Britton String Corp.: Statement of Cash Flows for 2022 (Millions of Dollars) Operating Activities Net income Noncash adjustments Depreciation Working capital adjustments Due to change in accounts receivable Due to change in inventories Due to change in accounts payable 2022 2022 mit Working capital adjustments Due to change in accounts receivable Due to change in inventories Due to change in accounts payable Due to change in accruals Net cash provided (used) by operating activities Investing Activities Cash used to acquire fixed assets Due to change in short-term investments Net cash provided (used) by investing activities Financing Activities Due to change in notes payable Due to change in long-term debt Due to change in common stock Payment of common dividends Net cash provided (used) by financing activities Summary Net increase/decrease in cash $ $ $ $ Cash at the beginning of the year Cash at the end of the year Check My Work Reset Problem