What is the cash flow to creditors? 22. Cash Flow Identity 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.
2019 Income Statement
Sales $750,727 Cost of goods sold 430,821 Selling and administrative 165,676 Depreciation 72,489 EBIT $ 81,741 Interest 25,630 EBT $ 56,111 Taxes 14,028 Net income $ 42,083 Dividends $ 14,200 Addition to retained earnings 27,883
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018
Cash $ 17,691 Accounts payable $ 12,721 Accounts receivable 25.228 Notes payable 19,149 Inventory 18,321 Current liabilities $ 31,870 Current assets $ 61,240 Long-term debt $181,000 Net fixed assets $457,454 Owners’ equity $305,824 Total liabilities and Total assets $518,964 owners’ equity $518,694