Problem $2-27$ Statement $of$ Cash Flows $(LG2-5)$

Use the balance sheet and income statement below:

CLANCY$S$ DOG BISCUIT CORPORATIONBalance Sheet $asof$ December $31,2018$ and $2017(in$ millions $of$ dollars$)Assets20182017$ Liabilities and Equity$20182017$Current assets: Current liabilities: Cash and marketable $securities$$$2$ $$2$ Accrued wages and taxes$$7$ $$4$ Accounts receivable $1915$ Accounts payable $1412$ Inventory $2220$ Notes payable $1210$ Total$$43$ $$37$ Total$$33$ $$26$ Fixed assets: Long$-$term debt$$26$ $$21$ Gross plant and equipment$$80$ $$60$ Stockholders$$ equity: Less: Accumulated depreciation $1510$ Preferred stock $(2$ million shares$)$$$2$ $$2$ Net plant and equipment$$65$ $$50$ Common stock and paid$-in-$surplus $(5$ million shares$)1111$ Other long$-$term assets $1313$ Retained earnings $4940$ Total$$78$ $$63$ Total$$62$ $$53$ Total assets$$121$ $$100$ Total liabilities and equity$$121$ $$100$

CLANCY$S$ DOG BISCUIT CORPORATIONIncome Statement for Years Ending December $31,2018$ and $2017(in$ millions $of$ dollars$)20182017$Net sales$$78$ $$82$ Less: Cost $of$ goods sold $3935$ Gross profits$$39$ $$47$ Less: Other operating expenses $76$ Earnings before interest, taxes depreciation, and amortization $(EBITDA)$$$32$ $$41$ Less: Accumulated depreciation $55$ Earnings before interest $an$