Question.

1.

a. You have been hired as the financial analyst for Cookie Monster Bakery. To prove your quality as an analyst, they have asked you to draw the balance sheet, the income statement for the companys last two years of operation. They have also asked you to calculate the cash flows from assets, cash flow to creditors, and cash flow to owners for 2021. The following table sumarizes the information you have been given on the companys financials for the years 2020 and 2021. Take into account that the tax rate for those years was 34%

	2020	2021
Cost of goods sold	2,487e	2,942e
Other expenses	591	515
Interest	485	579
Cash	3,792	4,041
Accounts receivable	5,021	5,892
Notes payable	732	717
Long-term debt	12,700	15,435
Net fixed assets	31,805	33, 921
Depreciation	1,038	1,085
Accounts payable	3,984	4,025
Sales	7,233	8,085
Inventory	8,927	9,555
Dividends	882	1,011

b. What can you say about the companys cash flows for 2021? Write a brief discussion and give your recommendations for the company.