Graffiti Advertising, Inc., reported the following financial statements for the last two years. Construct the cash flow
Question:
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
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Essentials of Corporate Finance
ISBN: 978-0078034756
8th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan