***We answer the first question by using the sheet below

3. Cash Flow In 2017 Fresno Cleaners' balance shows: current assets is 34,500, fixed assets is 80,000, current liabilities is 20,300, long-term debt is 55,600, equity is 38,600. The 2018 balance sheet shows: current assets is 36,100, fixed assets is 82,300, current liabilities is 23,200 long-term debt is 51,100, equity is 44,100. Fresno Cleaners 2018 Income Statement Net sales Cost of goods sold Depreciation EBIT Interest paid Earnings before taxes Taxes 32% Net income Dividends paid Addition to retained earnings $ 68,700 51,300 4,600 ? 1,225 ? M ? 3,400 ? Use the balance sheet information and the 2018 Income Statement (from Question 2) to calculate cash flow from assets, cash flow to creditors and cash flow to stockholders. Fresno Cleaner 2018 Income Statement Amount Net Sales $ 68,700 cost of goods sold $ 51,300 Depreciation $ 4,600 EBIT= Net Sales - Cost of good sold - Depreciation $ 12,800 Interest Paid $ 1,225 Earning before Tax EBIT -Interest $ 11,575 Taxes 32% Earning before Tax * Tax Rate $ 3,704 Net Income = Earning before Tax - Tax $ 7,871 Dividends Paid $ 3,400 Addition to retain earning = Net Income - Dividend paid $ 4,471