Question

CLANCY’S DOG BISCUIT CORPORATION
Balance Sheet as of December 31, 2015 and 2014
(in millions of dollars)

  Assets

2015

2014

  Liabilities and Equity

2015

2014

  Current assets:

  Current liabilities:

      Cash and marketable securities

$

8

$

8

      Accrued wages and taxes

$

11

$

10

      Accounts receivable

26

21

      Accounts payable

20

18

      Inventory

34

26

      Notes payable

18

16

          Total

$

68

$

55

          Total

$

49

$

44

  Fixed assets:

  Long-term debt:

$

33

$

27

      Gross plant and equipment

$

91

$

72

  Stockholders’ equity:

      Less: Depreciation

20

16

      Preferred stock (2 million shares)

$

2

$

2

      Common stock and paid-in surplus

      Net plant and equipment

$

71

$

56

          (5 million shares)

11

11

      Other long-term assets

19

19

  Retained earnings

63

46

          Total

$

90

$

75

          Total

$

76

$

59

  Total assets

CLANCY’S DOG BISCUIT CORPORATION Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars)
	2015				2014
Net sales	$	90			$	94
Less: Cost of goods sold		45				41
Gross profits	$	45			$	53
Less: Other operating expenses		6				5
Earnings before interest, taxes depreciation,   and amortization (EBITDA)	$	39			$	48
Less: Depreciation		4				4
Earnings before interest and taxes (EBIT)	$	35			$	44
Less: Interest		5				5
Earnings before taxes (EBT)	$	30			$	39
Less: Taxes		9				12
Net income	$	21			$	27
Less: Preferred stock dividends	$	1			$	1
Net income available to common stockholders	$	20			$	26
Less: Common stock dividends		3				3
Addition to retained earnings	$	17			$	23
Per (common) share data:
Earnings per share (EPS)	$	4.00			$	5.20
Dividends per share (DPS)	$	0.60			$	0.60
Book value per share (BVPS)	$	14.80			$	11.40
Market value (price) per share (MVPS)	$	15.45			$	14.80

$

158

$

130

  Total liabilities and equity

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. Leave no cells blank - be certain to enter "0" wherever required.)

Answer 1