SPREADSHEET PROBLEMS (2-14) Build a Model: Financial State- ments, EVA, and MVA resource Begin with the partial model in the file Ch02 P14 Build a Model.xlsx on the textbooks Web site. a. The 2016 sales of Cumberland Industries were $455,000,000; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40%; and Cumberland paid 25% of its net income out in dividends. Given this information, construct Cumberlands 2016 income statement. Also calculate total dividends and the addition to retained earnings. (Hint: Start with the partial model in the file and report all dollar figures in thousands to reduce clutter.) b. The partial balance sheets of Cumberland Industries are shown here. Cumberland issued $10,000,000 of new common stock in 2016. 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. Cumberland Industries: Balance Sheets as of December 31 (Thousands of Dollars) 2016 2015 $ 74,625 15,100 85,527 34,982 $210,234 42,436 $252,670 $ 23,109 22,656 14,217 $ 59,982 63,914 $123,896 $ 90,000 38,774 $128,774 $252,670 Assets Cash Short-term investments Accounts receivable Inventories 38,450 $ 91,450 11,400 108,470 $ 249,770 67,000 $ 316,770 Accounts payable Accruals 30,405 Total current assets Net fixed assets Total assets Liabilities and Equity $ 30,761 Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity c. Construct the statement of cash flows for 2016.