Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the balance sheet and income statement below: CLANCY'S DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars)
Use the balance sheet and income statement below:
CLANCY'S DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) Assets 2018 2017 Liabilities and Equity 2018 2017 Current assets: Current liabilities: Cash and marketable securities $4 Accounts receivable Inventory 4 26 31 61 Accrued wages and taxes Accounts payable Notes payable $17 $ 15 23 21 $ 70 59 $ 25 23 25 Total $ 73 Total Fixed assets: Long-term debt Stockholders' equity: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Other long-term assets $ 99$ 82 Preferred stock (2 million shares) Common stock and paid-in-surplus (5 million shares) Retained earnings $ 69 61 24 $ 93 $ 85 $166$146 11 58 24 51 $71 64 $166 $146 Total Total Total assets Total liabilities and equity CLANCY'S DOG BISCUIT CORPORATION Income Statement for Years Ending December 31, 2018 and 2017 (in millions of dollars) 2017 $100 104 46 $ 50 58 10 2018 Net sales Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings before interest, taxes depreciation, 50 and amortization (EBITDA) $ 39 48 Less: Accumulated depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income Less: Preferred stock dividends Net income available to comon stockholders 10 $ 13 Less: Common stock dividends Addition to retained earnings Per (common) share data: $ 30 39 10 $20 29 15 $11$14 10 $ 7$10 Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPs) Market value (price) per share (MVPS) $ 2.00 2.60 $ 0.60 0.60 $13.80 $12.40 $14.45$15.80 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started