1.Using the Financial Statements distributed in Class and attached to this file folder, please complete a Free Cash Flow Analysis for 2016.

2.Also, prepare an Additional Funds Needed (Chapter 12) analysis for 2017. The planned Sales increase percentage for 2017 will be 15%.

3. Will the company need external capital funding for 2017? If so how much?

4. As CFO for this firm, what does your Free Cash Flow Analysis tell you about this firm?

5. If you were the CFO of this firm what strategies would you use to reduce the need for external funding? Explain and give examples: you must have at least two strategies.

2016 S22.50 250,000 25% $7.45 Year-end common stock price Year-end shares outstanding Tax rate 250,000 25% Balance Sheets 201 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Gross Fixed Assets Less Accumulated Dep Net Fixed Assets Total Assets 2015 $7,282 $20,000 S632,160 $1,287,360 $1,946,802 S3,202,950 $263,160 $2,939,790 $4,886,592 $14,000 $71,632 $878,000 $1,716,480 $2,680,11:2 S2,975,420 $383,160 S5,272,372 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings otal common equity Total liabilities and equitv $196,879 $226,545 $184,600 $608,024 $2,500,000 $3,108,024 $1,680,936 S97,632 $1,778,568 $4,886,592 $466,88 $420,000 $380,000 $1,266,88 S2,500,000 S3,766,88 $1,680,93 $175,450 S1,505,486 S5,272,372 2016 S22.50 250,000 25% $7.45 Year-end common stock price Year-end shares outstanding Tax rate 250,000 25% Balance Sheets 201 Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Gross Fixed Assets Less Accumulated Dep Net Fixed Assets Total Assets 2015 $7,282 $20,000 S632,160 $1,287,360 $1,946,802 S3,202,950 $263,160 $2,939,790 $4,886,592 $14,000 $71,632 $878,000 $1,716,480 $2,680,11:2 S2,975,420 $383,160 S5,272,372 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings otal common equity Total liabilities and equitv $196,879 $226,545 $184,600 $608,024 $2,500,000 $3,108,024 $1,680,936 S97,632 $1,778,568 $4,886,592 $466,88 $420,000 $380,000 $1,266,88 S2,500,000 S3,766,88 $1,680,93 $175,450 S1,505,486 S5,272,372