Use the balance sheet and income statement below:

CLANCY$S$ DOG BISCUIT CORPORATION

Balance Sheet $asof$ December $31,2021$ and $2020$

$(in$ millions $of$ dollars$)$

Assets $20212020$ Liabilities and Equity $20212020$

Current assets: Current liabilities:

Cash and marketable $securities$ $ $71$ $ $70$ Accrued wages and taxes $ $48$ $ $40$

Accounts receivable $195180$ Accounts payable $150140$

Inventory $320290$ Notes payable $130130$

Total $ $586$ $ $540$ Total $ $328$ $ $310$

Fixed assets: Long$-$term debt $ $574$ $ $554$

Gross plant and equipment $ $1,070$ $ $880$ Stockholders$$ equity:

Less: Accumulated depreciation $144112$ Preferred stock $(6$ thousand shares$)$ $ $6$ $ $6$

Net plant and equipment $ $926$ $ $768$ Common stock and paid$-in$ surplus $(100$ thousand shares$)120120$

Other long$-$term assets $132132$ Retained earnings $616450$

Total $ $1,058$ $ $900$ Total $ $742$ $ $576$

Total assets $ $1,644$ $ $1,440$ Total liabilities and equity $ $1,644$ $ $1,440$

CLANCY$S$ DOG BISCUIT CORPORATION

Income Statement for Years Ending December $31,2021$ and $2020$

$(in$ millions $of$ dollars$)$

$20212020$

Net sales $ $890$ $ $800$

Less: Cost $of$ goods sold $388351$

Gross profits $ $502$ $ $449$

Less: Other operating expenses $4640$

Earnings before interest, taxes, depreciation, and amortization $(EBITDA)$ $ $456$ $ $409$

Less: Accumulated depreciation $(2018)3230$

Earnings before interest and taxes $(EBIT)$ $ $424$ $ $379$

Less: Interest $4741$

Earnings before taxes $(EBT)$ $ $377$ $ $338$

Less: Taxes $130110$

Net income $ $247$ $ $228$

Less: Preferred stock dividends $ $6$ $ $6$

Net income available $to$ common stockholders $ $241$ $ $222$

Less: Common stock dividends $7575$

Addition $to$ retained earnings $ $166$ $ $147$

Per $(common)$ share data:

Earnings per share $(EPS)$ $ $2\mathrm{.}41$ $ $2\mathrm{.}22$

Dividends per share $(DPS)$ $ $0\mathrm{.}75$ $ $0\mathrm{.}75$

Book value per share $(BVPS)$ $ $7\mathrm{.}36$ $ $5\mathrm{.}70$

Market value $(price)$ per share $(MVPS)$ $ $8\mathrm{.}39$ $ $6\mathrm{.}18$

Prepare a statement $of$ cash flows for Clancy$s$ Dog Biscuit Corporation. $(Enter$ your answers $in$ millions $of$ dollars. Amounts $tobe$ deducted should $be$ indicated with a minus sign.$)$

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