Problem 2-28 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: 2018 2017 $ Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Other long-term assets Total Total assets VALIUM'S MEDICAL SUPPLY CORPORATION Balance Sheet as of December 31, 2018 and 2017 (in thousands of dollars) 2018 2017 Liabilities and Equity Current liabilities: $ 76 $ 75 Accrued wages and taxes 189 185 Accounts payable 320 295 Notes payable $ 585 $ 555 Total Long-term debt $1,085 $ 890 Stockholders' equity: 154 117 Preferred stock (6 thousand shares) $ 931 $ 773 Common stock and paid-in surplus (100 thousand shares) 142 142 Retained earnings $1,073 $ 915 Total $1,658 $1,470 Total liabilities and equity 54 154 135 343 583 $ 45 145 135 $ 325 $ 564 $ $ $ 6 120 606 $ 732 $1,658 $ 6 120 455 $ 581 $1,470 09 VALIUM'S MEDICAL SUPPLY CORPORATION Income Statement for Years Ending December 31, 2018 and 2017 (in thousands of dollars) 2018 2017 Net sales $ 900 $ 810 Less: Cost of goods sold 393 356 Gross profits $ 507 $ 454 Less: Other operating expenses 51 45 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 456 $ 409 Less: Accumulated depreciation 37 35 Earnings before interest and taxes (EBIT) $ 419 $ 374 Less: Interest 52 46 Earnings before taxes (EBT) $ 367 $ 328 Less: Taxes 135 115 Net income $ 232 $ 213 Less: Preferred stock dividends $ 6 $ 6 Net income available to common stockholders $ 226 $ 207 Less: Common stock dividends 75 75 Addition to retained earnings $ 151 $ 132 Per (common) share data: Earnings per share (EPS) $2.26 $2.07 Dividends per share (DPS) $0.75 $0.75 Book value per share (BVPS) $7.26 $5.75 Market value (price) per share (MVPS) $8.29 $6.23 :2002 Prepare a statement of cash flows for Valium's Medical Supply Corporation. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows for Year Ending December 31, 2018 (in thousands of dollars) Cash flows from operating activities Additions (sources of cash): Subtractions (uses of cash): Net cash flow from operating activities Cash flows from investing activities Subtractions: Net cash flow from investing activities Cash flows from financing activities Additions: Subtractions: Net cash flow from financing activities Net change in cash and marketable securities