Problem #2: Prepare a Cash Flow Statement (Sources and Uses, 3 section) using the balance sheet and income statement presented for Philippe Corp. NAME: PHILIPPE CORPORATION 2017 and 2018 Balance Sheets ($ in millions) 2018 2017 Assets Current assets Cash $ 215 S 210 Accounts receivable 310 355 Inventory 328 507 Total S 853 $1.072 Fixed assets Net plant and equipment $6.085 $6.527 Total assets $7,157 $7.380 Liabilities and Owners' Equity Current liabilities S 207 Accounts payable S 298 Notes payable Z15 1.427 Total S1.922 $1.725 Long-term debt $1.987 $2.308 Owners' equity Common stock and paid-in surplus S1,000 $1,000 Retained earnings 2.248 2.347 $3.248 Total $3.347 Total liabilities and owners' equity S7.157 $7.380 PHILIPPE CORPORATION 2018 Income Statement ($ in millions) Sales $4,053 2.816 Cost of goods sold 550 Depreciation S 687 Earnings before interest and taxes 502 Interest paid S 185 Taxable income 39 Taxes (21%) S 146 Net income $ 47 Dividends Addition to retained earnings 99