Use the balance sheet and income statement below: 2021 2020 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, 2021 and 2020 (in millions of dollars) 2021 2020 Liabilities and Equity Current liabilities: $ $ 6 $ 6 Accrued wages and taxes 24 19 Accounts payable 30 24 Notes payable $ 60 $ 49 Total Long-term debt $ 85 $ 68 Stockholders' equity: 23 14 Preferred stock (2 million shares) $ 62 $ 54 Common stock and paid-in-surplus (5 million shares) 17 17 Retained earnings $ 79 $ 71 Total $139 $120 Total liabilities and equity $ 11 18 20 $ 49 $ 30 $ 8 16 14 $ 38 $ 25 $ 2. 11 47 $ 2 11 44 $ 57 $120 $ 60 $139 CLANCY'S DOG BISCUIT CORPORATION Income Statement for Years Ending December 31, 2021 and 2020 (in millions of dollars) 2021 2020 Net sales $ 86 $ 90 Less: Cost of goods sold 44 40 Gross profits $ 42 $ 50 Less: Other operating expenses 11 10 Earnings before interest, taxes depreciation, and amortization (EBITDA) $ 31 $ 40 Less: Accumulated depreciation 9 9 Earnings before interest and taxes (EBIT) $ 22 $ 40 Less: Interest 10 10 Earnings before taxes (EBT) $ 12 $ 21 Less: Taxes 3 4 Net income $ $ 17 Less: Preferred stock dividends $ $ 1 Net income available to common stockholders $ $ 8 $ 16 Less: Common stock dividends 5 5 Addition to retained earnings $ 3 $ 11 Per (common) share data: Earnings per share (EPS) $ 1.60 $ 3.20 Dividends per share (DPS) $ 1.00 $ 1.00 Book value per share (BVPS) $11.60 $11.00 Market value (price) per share (MVPS) $12.25 $14.40 9 1 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, 2021 (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