1. Use the following financial statements for LaForge Systems, Inc. to calculate the companys FCFF and FCFE for 2018. What are the adjustments to FCFF which result in FCFE?

Statement of Cash Flows (in $ millions)		2008
Net income		285
Depreciation		180
Accounts receivable		-39
Inventories		-39
Accounts payable		22
Accrued taxes & expenses		23
Cash from operations		432
Purchases of fixed assets		-349
Cash from investing		-349
Notes payable		10
Long-term debt		40
Dividends		-90
Cash from financing		-40
Change in cash		43
Cash- beginning of year		210
Cash- end of year		253
Supplemental:
Cash interest paid		130
Cash income taxes paid		190