You have been provided with 2020 and 2021 financial statement information (in Millions) for Midnights Inc.

Sales Depreciation Expense Cost of goods sold Other Expense Interest Expense Cash Accounts Receivable Short-term Notes Payable Long-term Debt Net Fixed Assets Accounts Payable Inventory Dividends Tax rate Common Stock Retained Earnings

2020

$ 12,573 1,661 4,979 946 776 6,067 8,034

1,171 20,320 50,888 4,384 14,283 1,411 34% 10,000 43,397

2021

$13,436 1,736 5,207 824 926 6,466 9,427

1,147 24,696 54,273 4,644 15,288 1,618 34%

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a) Prepare a statement of comprehensive income for Midnights Inc. for 2020 and 2021. Make sure to include the dividends paid and the addition to retained earnings on your statement of comprehensive income. (6 marks)

b) Prepare a statement of financial position for Midnights Inc. for 2020 and 2021. (7 marks)

c) Calculate the Cash flow from Assets for 2021. Make sure to include the OCF, Net Capital Spending and

change in NWC. (5 marks)

d) Calculate the Cash Flow to Creditors for 2021 (2 marks)

e) Calculate the Cash Flow to Shareholders for 2021 and show how the Cash Flow Identity holds. (3

marks)