2.. Below are the financial statements from which you'll derive the Free Cash Flows Identity: CASH FLOWS FROM ASSETS = CASH FLOWS TO CREDITORS + CASH FLOWS TO SHAREHOLDERS The income statement for each year will look like this: Income Statement 2014 2015 Sales $385,724 $470.172 Cost of goods sold 196,619 248,263 Selling and administrative 38,668 50,469 Depreciation 55,506 62.738 EBIT $94,931 $108,702 Interest 12.067 13.831 EBT $82,864 $94871 Taxes 24,859 28.461 Net income 558,00 5566,410 Dividends $23.202 S26,564 Addition to retained earnings $34,803 $39,846 2. The balance sheet for each year will be: Balance Sheet es of Dec. 31. 2014 Cash $28,372 || Accounts payable S20.143 Accounts receivable 20,104 | Notes payable 22.855 Inventory 38,706 |Current liabilities S42.998 Current assets S87,182 Long-term debi S123,6071 Net fixed assets $244,881 || Owners' equity S165.458 Total assets 5332,063 Total liab, and equity 5332.063 Balance Sheet as of Dec 31, 2015 Cash S42.865|||Accounts payable $34.091 Accounts receivable 26,078 Il Notes payable 24,955 Inventory 52,057|||Current liabilities $59,046 Current assets $121,000 Long-term debt $140,000 Net fixed assets S298,350 Owners' equity S220,304 Total assets 5419,350 Total liab, and equity 5419,350 PhotoGrid