Q 13.15. A new firm reports the following financials (in million dollars):

The firm also reports:

(You will need to compute changes in deferred taxes, which are $20-$16-$4 in 2001, as well as changes in working capital.) Can you compute an estimate of cash flows produced by this firm in these three years?

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Income Statement December 2001 2000 1999 Revenue 200 162 150 COGS + SG&A 620 60 58 57 20 19 18 Operating Income 120 85 75 Net Interest Income (Gains & Losses) 35 35 35 Income before Tax 85 50 40 Corporate Income Tax (at 40%) 34 20 16 Income after Tax 51 51 30 24 Extraordinary Items 0 0 0 Net Income 51 30 24