Royal Corps financial information (in millions, except for Dividends) for Problems 2 and 3:

2019 2018 Accounts Payable $ 7,000 $ 6,780

Accounts Receivable 5,000 4,685

Additional Paid-in Capital 4,000 4,000

Cash 8,577 5,654

Common Stock 3,107 3,107

Cost of Goods Sold 48,464 47,594

Depreciation 1,315 1,244

Dividends per share 1.53 1.28

Goodwill 18,051 19,121

Interest Expense 1,200 1,100

Inventory 8,871 8,101

Long-Term Debt ? ?

Net Property, Plant & Equipment 26,500 25,311

Notes Payable 4,200 3,770

Research & Development Expense 1,847 1,747

Retained Earnings ? 23,045

Revenue 61,200 59,000

Selling General & Admin Expense 3,200 3,024

Shares Outstanding 1,170 1,280

Treasury Stock (6,500) (4,200)

Tax Rate = 30%

Note that a reduction in Goodwill would be similar to Depreciation Expense in a firms Operating Cash Flow.

A. Construct Income Statements for 2018 and 2019 B. Construct Balance Sheets for 2018 and 2019

C. Construct a 2019 Statement of Cash Flows (Goodwill reduction is a noncash expense)