12/31/2019 12/31/2018 ASSETS Assets Current Assets: Cash and equivalents $ 450.00 $ 245.00 Short-term investments $ 300.00 $ 100.00 Accounts Receivable $ 100.00 $ 65.00 Inventory $ 70.00 $ 50.00 Total $ 920.00 $ 460.00 Fixed Assets: Gross plant and equipment $ 1,349.30 $ 1,349.30 Accumulated depreciation $ 100.00 $ 80.00 Net plant and equipment $ 1,249.30 $ 1,269.30 Total assets $ 2,169.30 $ 1,729.30 12/31/2019 12/31/2018 LIABILITIES & EQUITY Liabilities and Equity Current liabilities: Accounts payable $ 164.83 $ 95.00 Accruals $ 26.00 $ 35.00 Notes payable $ 50.00 $ 200.00 Total $ 240.83 $ 330.00 Long-term bonds $ 155.00 $ 285.00 Total Liabilites $ 395.83 $ 615.00 Common stock (20M shares) $ 150.00 $ 150.00 Retained Earnings $ 1,623.48 $ 964.30 Total Equity $ 1,773.48 $ 1,114.30 Total Liabilities and Equity $ 2,169.30 $ 1,729.30

2019 2018 Net Sales $ 4,400.00 $ 4,000.00 Expenses (excl. depr./amortz.) $ 2,772.00 $ 2,600.00 EBITDA $ 1,628.00 $ 1,400.00 Depreciation and amortization $ 20.00 $ 20.00 EBIT (operating income) $ 1,608.00 $ 1,380.00 Less: Interest $ 10.00 $ 12.00 EBT $ 1,598.00 $ 1,368.00 Taxes $ 399.50 $ 342.00 NET INCOME $ 1,198.50 $ 1,026.00 Less: Common Stock Dividends $ 539.33 $ 461.70 Addition to Retained Earnings $ 659.18 $ 564.30 Per share data Common shares (millions) 10 10 Market price $ 234.50 $ 134.00 Earnings per share (EPS) $ 119.85 $ 102.60 Dividends per share $ 53.93 $ 46.17 Book value per share $ 177.35 $ 111.43 Additional data Tax Rate 25.00% 25.00% WACC 8.0% 8.0%

Using the following Financial Statements , apply the Five Steps to FCF (not the five good uses of FCF) to calculate the 2019 FCF. You can use the sheet to perform the calculations and display the formulas or simply use your BAM. Then submit the link as your solutions. Otherwise you can handwrite and submit the calculations.