1.Suppose that you have been provided with the following reformulated Balance Sheet for a typical manufacturing company.

Operating Assets (OA)		Financial Assets (FA)
Operating cash	20	Financial cash	50
Accounts Receivable	100	Short-term investments	100
Inventory	100	Total Financial Assets	150
Leased assets	150
Property and Plant	370	Financial Obligations (FO)
Intangibles	100	Lease liability	200
Other Assets	30	Bonds payable	300
Total Operating Assets	870	Derivative financial securities	20
		Total Financial Obligations	520
Operating Liabilities (OL)
Accounts payable	100	Net Financial Obligations (NFO)	370
Deferred tax liability	20
Provisions	50	Shareholders Equity
Total Operating Liabilities	170	Preference shares	80
		Common shares	100
Net Operating Assets (NOA)	700	Retained earnings	100
		Non-controlling interest	50
		Total Shareholders Equity	330

Which account has NOT been reclassified correctly when reformulating the Balance Sheet?

	1.	Preference shares
	2.	Non-controlling interest
	3.	Lease liabilities
	4.	Derivative financial securities

2. Suppose that you have been provided with the following financial information about a company.

	2019	2020
Common Shareholders Equity (S/E)	352	323
Cash dividends	50	20
Common share repurchases	0	45
Common share issues	13	60

In addition to this information, you have also been informed that the company has net financial obligations (NFO) of 25 in 2019 and 35 in 2020, and net financial expenses of 3 in 2019 and 4 in 2020. Based on this information, what is the companys free cash flow (FCF) for 2020?

	1.	-30
	2.	-24
	3.	-1
	4.	-39