2. Abbreviated financial statements are given for Fletcher Corporation in the following table: 2016 2017 Revenues $600.0 $690.0 Operating expenses 520.0 600.0 Depreciation 16.0 18.0 64.0 72.0 Earnings before interest and taxes 5.0 5.0 Less Interest Expense Less: Taxes 23.6 26.8 Equals: Net income 35.4 40.2 Addendum: 150 200 Yearend working capital Principal repayment 25.0 25.0 Capital expenditures 20 10 Yearend working capital in 2015 was $160 million and the firm's marginal tax rate is 40% in both 2001 and 2002. Estimate the following for 2016 and 2017: a. Free cash flow to equity. b. Free cash flow to the firm. 2. Abbreviated financial statements are given for Fletcher Corporation in the following table: 2016 2017 Revenues $600.0 $690.0 Operating expenses 520.0 600.0 Depreciation 16.0 18.0 64.0 72.0 Earnings before interest and taxes 5.0 5.0 Less Interest Expense Less: Taxes 23.6 26.8 Equals: Net income 35.4 40.2 Addendum: 150 200 Yearend working capital Principal repayment 25.0 25.0 Capital expenditures 20 10 Yearend working capital in 2015 was $160 million and the firm's marginal tax rate is 40% in both 2001 and 2002. Estimate the following for 2016 and 2017: a. Free cash flow to equity. b. Free cash flow to the firm