Chapter 2: Reviewing Financial Statements- Integrated Mini-Case Working with Financial Statements Shown below are the partial financial statements for Garners’ Platoon Mental Health Care, Inc. Fill in the blanks on the four income statements.

2027

2026

2027

2026

Assets

Liabilities and Equity

Current assets:

Current liabilities:

Cash and marketable securities

$ 421

$_____

Accrued wages and taxes

$316

$242

Accounts receivable

  
_____

1,020

Accounts payable

867

791

Inventory

1,760

1,581

Notes payable

  
_____

714

Total

$3,290

$_____

Total

$2,055

$1,747

Fixed assets:

Long-term debt:

$3,090

$_____

Gross plant and equipment

$_____

$4,743

Stockholders’ equity:

Less: Accumulated depreciation

840

640

Preferred stock (30 million shares)

$60

$60

Net plant and equipment

$4,972

$_____

Common stock and paid-in surplus (200 million shares)

637

______

Other long-term assets

 
_____

790

Retained earnings

3,312

2,440

Total

$5,864

$4,893

Total

$4,009

$3,137

Total assets

$_____

$7,889

Total liabilities and equity

$9,154

$7,889

2027

2026

Net sales

$ 4,980

$______

Less: Cost of goods sold

   
______

2,035

Gross profits

$ 2,734

$ 2,313

Less: Other operating expenses

125

100

Earnings before interest, taxes, depreciation, and amortization
(EBITDA)

$ 2,609

$ 2,213

Less: Depreciation

200

191

Earnings before interest and taxes (EBIT)

$ 2,409

$______

Less: Interest

   
______

285

Earnings before taxes (EBT)

$ 2,094

$ 1,737

Less: Taxes (21 percent)

   
______

______

Net income

$1,654

$1,372

Less: Preferred stock dividends

$ 60

$______

Net income available to common stockholders

$ 1,594

$ 1,312

Less: Common stock dividends

722

722

Addition to retained earnings

$872

$______

Per (common) share data:

Earnings per share (EPS)

$______

$______

Dividends per share (DPS)

$______

$______

Book value per share (BVPS)

$______

$______

Market value (price) per share (MVPS)

$26.850

$22.550

Section A. Cash flows from operating activities

Net income

$______

Additions:

Depreciation

______

Increase in accrued wages and taxes

______

Increase in accounts payable

______

Subtractions:

Increase in accounts receivable

______

Increase in Inventory

______

Net cash flow from operating activities

$______

Section B. Cash flows from investing activities

Subtractions:

Increase in fixed assets

$______

Increase in other long-term assets

______

Net cash flow from investing activities

$______

Section C. Cash flows from financing activities

Additions:

Increase in notes payable

$______

Increase in long-term debt

_____

Increase in common and preferred stock

_____

Subtractions:

Pay preferred stock dividends

______

Pay common stock dividends

______

Net cash flow from financing activities:

$______

Section D. Net change in cash and marketable securities

$26

Balance of retained earnings, December 31, 2026

$ 2,440

Plus: Net income for 2027

Less: Cash dividends paid

Preferred stock

$______

Common stock

$______

Total cash dividends paid

Balance of retained earnings, December 31, 2027

$_______