1. Prepare reorganized financial statements. A robust DCF requires three reorganized financial statements: NOPLAT and its reconciliation to net income, invested capital and its reconciliation to total funds invested, and the statement of retained earnings. The three statements will be used to calculate cash flow, as well as move from core operating value to enterprise value and enterprise value to equity value. Assignment II reorganized the financial statements for Henkel. If you have not done so already, make sure to reorganize the income statement and balance sheet into operating, nonoperating, and financial items.