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1. Review the Income Statement and Balance Sheet below: 2017 $275 120 $155 15 $140 DPH TREE FARM, INC. Income Statement as of December 31,
1. Review the Income Statement and Balance Sheet below: 2017 $275 120 $155 15 $140 DPH TREE FARM, INC. Income Statement as of December 31, 2018 and 2017 (in millions of dollars) 2018 Net sales (all credit) $315 Less: Cost of goods sold 133 Gross profits $182 Less: Other operating expenses 17 Earnings before interest, taxes, depreciation, and $165 amortization (EBITDA) Less: Depreciation and amortization 13 Earnings before interest and taxes (EBIT) $152 Less: Interest 16 Earnings before taxes (EBT) $136 Less: Taxes 46 46 Net income $ 90 90 Less: Preferred stock dividends Net income available to common stockholders $80 Less: Common stock dividends 25 Addition to retained earnings DPH TREE FARM, INC Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 2018 2017 Assets Llabilities and Equity Current assets Current liabilities Cash and marketable securities $24 $ 25 Accrued wages and taxes $20 $15 Accounts receivable 70 65 Accounts payable 55 50 Inventory 11 100 Notes payable 48 45 Total $205 $190 Total $123 $110 Fixed assets Long-term debt 192 190 Gross plant and equipment $368 $300 Total debt 315 300 Less: Accumulated 53 40 Stockholders' equity depreciation Net plant and equipment $315 $260 Preferred stock (5 million shares 55 55 Other long-term assets 50 50 Common stock and paid in 40 40 surplus 120 million shares) Retained earnings 210 155 Total $365 $ 310 Total $ 255 $ 200 Total assets $570 $500 Total liabilities and equity $570 500 12 $128 18 $110 A 40 620 70 $ 10 DOW 5 10 $ 60 $55 25 $ 35 2a. Calculate the Free Cash Flow, assuming a 219 tax rate. Show your math. w
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