1. A firm has projected sales in May, June, and July of $100, $200, and $300, respectively. The firms purchases for a month are 70% of next months sales. The firm pays for its purchases as follows: 50% cash and 50% on account (paid in the next month). The firms total cash disbursements in June for purchases are ___.

2. Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended December 31, 2010, considering that NOPAT for 2010 is $22,000 (Please show your work below

For the year ended December 31, 2010

2009 2010

Depreciation $3,000

EBIT $30,000

Interest Expenses $3,000

Taxes $8,000

Cash $21,000 $24,000

Accts Receivable $39,000 $45,000

Inventory $27,000 $30,000

Net fixed assets $22,000 $24,000

Accounts payable $25,000 $30,000

Notes payable $50,000 $40,000

Accruals $1,000 $2,000

1. Operating Cash Flow
2. Free Cash Flow