Use the balance sheet and income statement below: 2018 2017 37 Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Other long-term assets Total Total assets CLANCY'S DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Liabilities and Equity Current liabilities: $ 6 $ 6 Accrued wages and taxes 38 28 Accounts payable 33 Notes payable $ 81 $ 67 Total Long-term debt $105 $ 86 Stockholders' equity: 27 23 Preferred stock (2 million shares) $ 78 $ 63 Common stock and paid-in-surplus (5 million shares) 26 26 Retained earnings $ 104 $ 89 Total $185 $156 Total liabilities and equity $ 7 25 24 $ 56 $ 43 $ 5 23 21 $ 49 $ 41 $ 2 11 $ 2 11 73 $ 86 $185 53 $ 66 $ 156 52 6 51 CLANCY'S DOG BISCUIT CORPORATION Income Statement for Years Ending December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Net sales $ 104 $ 108 Less: Cost of goods sold 52 48 Gross profits 60 Less: Other operating expenses 5 Earnings before interest, taxes depreciation, and amortization (EBITDA) 55 Less: Accumulated depreciation 4 Earnings before interest and taxes (EBIT) 42 Less: Interest 4 Earnings before taxes (EBT) $ 38 47 Less: Taxes 17 Net income - 24 $ 30 Less: Preferred stock dividends $ 1 1 Net income available to common stockholders 23 $ 29 Less: Common stock dividends 3 3 Addition to retained earnings $ 20 $ 26 Per (common) share data: Earnings per share (EPS) $ 4.60 $ 5.80 Dividends per share (DPS) $ 0.60 $ 0.60 Book value per share (BVPS) $16.80 $ 12.80 Market value (price) per share (MVPS) $17.45 $16.20 14 Prepare a statement of cash flows for Clancy's Dog Biscuit Corporation. (Enter your answers in millions of dollars. Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows for Year Ending December 31, 2018 (in millions of dollars) Cash flows from operating activities Additions (sources of cash: Subtractions (uses of cash): Net cash flow from operating activities Cash flows from investing activities Subtractions: Net cash flow from investing activities Cash flows from financing activities Additions: Subtractions: Net cash flow from financing activities Net change in cash and marketable securities