Bailey Corporation?s financial statements (dollars and shares are in millions) are provided here.

a. What was net working capital for 2007 and 2008?

b. What was Bailey?s 2008 free cash flow?

c. Construct Bailey?s 2008 statement of stockholders? equity.

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Balance Sheets as of December 31 2007 2008 Assets $ 14,000 S 13,000 Cash and equivalents Accounts receivable 30,000 25,000 21,000 S 59,000 Inventories 28,125 $ 72,125 50,000 $122,125 Total current assets Net plant and equipment 47,000 $106,000 Total assets Liabilities and Equity Accounts payable Notes payable Accruals $ 10,800 $ 9,000 5,150 6,000 $ 20,150 15,000 $ 35,150 50,000 20,850 $ 70,850 $106.000 6,700 7,600 $ 25,100 15,000 $ 40,100 Total current liabilities Long-term bonds Total debt Common stock (5,000 shares) 50,000 Retained earnings Common equity Total liabilities and equity 32,025 $ 82,025 $122,125 Income Statement for Year Ending December 31, 2008 Sales $214,000 Operating costs excluding depreciation and amortization 170,000 $ 44,000 5,000 $ 39,000 EBITDA Depreciation & amortization EBIT Interest 1,750 $ 37,250 14,900 $ 22.350 EBT Taxes (40%) Net income Dividends paid $ 11,175