The 2021 and 2020 balance sheets for Sunset Industries are provided below. The company’s sales for 2021 were $1,320 million, and EBITDA was 15% of sales. Furthermore, depreciation amounted to 10% of net fixed assets, interest expense was $30 million, the corporate tax rate was 25%, and Sunset pays out 40% of its net income as dividends. Sunset had 25 million shares outstanding in 2021, the 12/31/21 stock price was $80 per share, and its after-tax cost of capital was 15%. Based upon this information, answer the following questions. Sunset Industries December 31 Balance Sheets (in thousands of dollars)

2021 2020

Assets

Cash and cash equivalents $55,908 $44,000

Excess cash $5,992 $6,793

Accounts receivable $112,044 $92,370

Inventories $176,251 $157,488

Total current assets $350,195 $300,651

Net fixed assets $408,000 $324,000

Total assets $758,195 $624,651

Liabilities and equity

Accounts payable $42,018 $30,420

Accruals $24,187 $18,981

Notes payable $38,500 $40,000

Total current liabilities $104,705 $89,401

Long-term debt 125,000 $110,000

Total liabilities $229,705 $199,401

Common stock $336,000 $290,000

Retained Earnings $192,490 $135,250

Total common equity $528,490 $425,250

Total liabilities and equity $758,195 $624,651

Question # 1 What was the company’s 2021 net income?

Question #2 How much cash was provided by operating activities in 2021?

Question #3 Set up the company’s 2021 Statement of Stockholders’ Equity.