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Use the balance sheet and income statement below: CLANCYS DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars)
Use the balance sheet and income statement below:
CLANCYS DOG BISCUIT CORPORATION | ||||||||||||||||
Balance Sheet as of December 31, 2021 and 2020 | ||||||||||||||||
(in millions of dollars) | ||||||||||||||||
Assets | 2021 | 2020 | Liabilities and Equity | 2021 | 2020 | |||||||||||
Current assets: | Current liabilities: | |||||||||||||||
Cash and marketable securities | $ | 3 | $ | 3 | Accrued wages and taxes | $ | 8 | $ | 5 | |||||||
Accounts receivable | 18 | 16 | Accounts payable | 15 | 13 | |||||||||||
Inventory | 24 | 21 | Notes payable | 14 | 11 | |||||||||||
Total | $ | 45 | $ | 40 | Total | $ | 37 | $ | 29 | |||||||
Fixed assets: | Long-term debt | $ | 22 | $ | 22 | |||||||||||
Gross plant and equipment | $ | 79 | $ | 62 | Stockholders equity: | |||||||||||
Less: Accumulated depreciation | 17 | 11 | Preferred stock (2 million shares) | $ | 2 | $ | 2 | |||||||||
Net plant and equipment | $ | 62 | $ | 51 | Common stock and paid-in-surplus (5 million shares) | 11 | 11 | |||||||||
Other long-term assets | 14 | 14 | Retained earnings | 49 | 41 | |||||||||||
Total | $ | 76 | $ | 65 | Total | $ | 62 | $ | 54 | |||||||
Total assets | $ | 121 | $ | 105 | Total liabilities and equity | $ | 121 | $ | 105 | |||||||
CLANCYS DOG BISCUIT CORPORATION | |||||||
Income Statement for Years Ending December 31, 2021 and 2020 | |||||||
(in millions of dollars) | |||||||
2021 | 2020 | ||||||
Net sales | $ | 80 | $ | 84 | |||
Less: Cost of goods sold | 41 | 37 | |||||
Gross profits | $ | 39 | $ | 47 | |||
Less: Other operating expenses | 8 | 7 | |||||
Earnings before interest, taxes depreciation, and amortization (EBITDA) | $ | 31 | $ | 40 | |||
Less: Accumulated depreciation | 6 | 6 | |||||
Earnings before interest and taxes (EBIT) | $ | 25 | $ | 40 | |||
Less: Interest | 7 | 7 | |||||
Earnings before taxes (EBT) | $ | 18 | $ | 27 | |||
Less: Taxes | 4 | 6 | |||||
Net income | $ | 14 | $ | 21 | |||
Less: Preferred stock dividends | $ | 1 | $ | 1 | |||
Net income available to common stockholders | $ | 13 | $ | 20 | |||
Less: Common stock dividends | 5 | 5 | |||||
Addition to retained earnings | $ | 8 | $ | 15 | |||
Per (common) share data: | |||||||
Earnings per share (EPS) | $ | 2.60 | $ | 4.00 | |||
Dividends per share (DPS) | $ | 1.00 | $ | 1.00 | |||
Book value per share (BVPS) | $ | 12.00 | $ | 10.40 | |||
Market value (price) per share (MVPS) | $ | 12.65 | $ | 13.80 | |||
Prepare a statement of cash flows for Clancys Dog Biscuit Corporation. (Enter your answers in millions of dollars. Amounts to be deducted should be indicated with a minus sign.)
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