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show work MoonStar, Inc. 2019 Income Statement ($ in millions) Net sales $900.0 Less: Cost of goods sold $350.0 Less: Depreciation expense $120.0 Less: Other

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MoonStar, Inc.

2019 Income Statement ($ in millions)

Net sales

$900.0

Less: Cost of goods sold

$350.0

Less: Depreciation expense

$120.0

Less: Other expenses

$90.0

Earnings before interest and taxes

$340.0

Less: Interest paid

$100.0

Taxable Income

$240.0

Less: Taxes (40%)

$96.0

Net income

$144.0

Dividends

$28.8

Additions to Retained Earnings

$115.2

MoonStar, Inc.

2018 and 2019 Balance Sheets ($ in millions)

2018

2019

2018

2019

Cash

40.0

35.0

Accounts payable

125.0

137.8

Accounts rec.

210.0

200.0

Notes payable

55.0

55.0

Inventory

300.0

315.0

Total

180.0

192.8

Total

550.0

550.0

Long-term debt

655.0

767.0

Net fixed assets

1060.0

1300.0

Common stock

665.0

665.0

Retained earnings

110.0

225.2

Total assets

1610.0

1850.0

Total liab.& equity

1610.0

1850.0

(A) find the MoonStars cash flow from assets for 2019 by finding its operating cash flows, net capital spending, change in net working capital. (B) What are the MoonStars cash flow to creditors and cash flow to stockholders? Interpret the results in (A) and (B).

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