2. There are two firms, A and B. Each firm has bonds outstanding with a par value of $20,000 and 4 ycars to maturity as of the end of FY' 14 . Firm A's bonds pay annual coupons of 10%. Firm B's bonds pay annual coupons of 5%. Assume: - For the year 2015 all sales, inventory purchases from suppliers, operating expenses and taxes are made in cash. - All the net income is paid out as dividends for each firm. - The tax rate is 30%. Complete the FY15 income statement, the FY 15 direct statement of cash flows and the EOY'15 balance sheet below for each firm. Note that you'll have to compute the YTM on the bonds for each company in order to find the interest expense. Similar to what we did in class, prepare the first year of the amortization table, and use it to find what goes in interest expense (income statement) and the ending carrying value of the bonds (balance sheet value as at EOY'15). Note that the bonds payable on the balance sheet at EOY'14 would be the beginning carrying value (present value when calculating YTM)