Graffiti Advertising, Inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company. Explain what each number means.

2014 Income Statement

Sales ............................................. $621,720

Cost of goods sold .............................. 334,427

Selling & administrative ....................... 137,206

Depreciation ...................................... 60,033

EBIT ............................................. $ 90,054

Interest ........................................... 21,226

EBT ............................................. $ 68,828

Taxes .............................................. 27,531

Net income ..................................... $ 41,297

Dividends ...................................... $ 15,600

Addition to retained earnings ................ $ 25,697

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GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2013 S 14,652 20,893 Cash Accounts receivable Inventory Current assets Net fixed assets Accounts payable Notes payable Current liabilities Long-term debt Owners' equity $10,535 15,858 $ 26,393 $150,500 $252,694 S378,869 Total liabilities and owners equity Total assets $429,587 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2014 $11,563 18,113 $ 29,676 $167,200 $314,041 S 15,737 Cash Accounts receivable Inventory Current assets Net fixed assets Accounts payable Notes payable Current liabilities Long-term debt Owners' equity 8 25,029 Total liabilities and owners' equity Total assets $510,917