2. Free Cash Flow (FCF) Calculations As of year end 2011, Apple had excess assets not needed for its operations totaling $74 billion. These excess assets included excess cash ($15 billion in 2011; $14 billion in 2010) and all long-term marketable securities (reported at market value). For simplicity, assume no tax would be levied on Apple's excess assets if Apple were to distribute them to its shareholders. Apple's market value of equity at December 2011 was $360.5 billion, it had no long term debt outstanding, and it had an effective tax rate of 20% Apple Inc. Balance Sheet ($ in millions) Assets Year ending Dec-2010 Dec-2011 Liabilities & Equity Year ending: Dec-2010 Dec-2011 Cash and marketable securities 25,600 27,000 Accounts Payable 12,000 15,000 Accounts Receivable 5,500 5,200 Inventory 1,000 800 Other current assets 9.500 13.000 Accrued expenses Other Current Operating Liabilities Total Current Liabilities 9,000 13,000 6,500 12,000 27.500 40,000 Total current assets 41,600 46,000 Total Liabilities 27,500 40,000 Property, plant and equipment (gross) 7,000 12,000 Accumulated depreciation 2,500 4,000 Common Stock 10,600 14,000 Net Property. Plant and Equipment 4.500 8.000 Betained Earnings 37.000 59.000 Long term marketable securities 29,000 59,000 Total Shareholders Equity 47.600 73.000 Total Assets 75,100 113,000 Total Liabilities and Equities 75,100 113,000 Income statements (5 in millions) Dec-2010 Dec-2011 Revenue $65,000 110,000 Cost of goods sold 40,000 65,000 Gross margin 25,000 45,000 Research and development -2,000 -2,500 Selling general.and administrative 5.000 7.000 Operating Income 18,000 35,500 Interest expense Q Income before taxes 18,000 35,500 locome tax expense 3.600 2.100 Net income $14,400 $28,400 Please complete the following components of ECE for the year ended Dec 2011. 2.1. EBIT 2.2. Taxes paid? 2.3. Non cash charges to add back? 2.4. change in the required cash balance (the portion of cash needed for net working capital)? 2.5. Investment in net working capital (including cash required for operations)? 26. Capital expenditures? 2.7 Unlevered Free Cash Flow?