1. The following income statement and balance sheets should be used for Questions 1 through 5

   Delco Accents, Inc. 2021 Income Statement ($ in millions)

   Net sales $10,556

   Less: Cost of goods sold 4,854

   Less: Depreciation 1,756

   Earnings before interest and taxes 3,946

   Less: Interest paid 850

   Taxable income 3,096

   Less: Taxes 650

   Net income $2,446

   Addition to retained earnings $2,121

   Dividends paid 325

   Delco Accents, Inc. 12/31/20 and 12/31/21 Balance Sheet ($ in millions)

   2020 2021 2020 2021

   Cash $1,455 $1,596 Accounts payable $1,150 $1,261

   Accounts rec. 2,460 2,698 Notes payable 2,600 2,852

   Inventory 1,405 1,541 Total $3,750 $4,113

   Total $5,320 $5,835 Long-term debt 7,000 7,372

   Net fixed assets 19,300 21,872 Common stock 5,500 5,731

   Retained earnings 8,370 10,491

   Total assets $24,620 $27,707 Total liabilities $24,620 $27,707

   What is the firms net capital spending for 2021?

   	A.	$2,572
   	B.	-$1,890
   	C.	$3,930
   	D.	$4,328
   	E.	$5,215

   What is the firms operating cash flow for 2021?

   A.

   $5,052

   B.

   $6,485

   C.

   $4,679

   D.

   $3,819

   E.

   $1,922

   What is the firms change in net working capital for 2021?

   A.

   $152

   B.

   $1,545

   C.

   $1,722

   D.

   $358

   E.

   $784

   What is the firms cash flow to creditors for 2021?

   	A.	$250
   	B.	-$61
   	C.	$478
   	D.	$750
   	E.	$8,000