20092010Sales ($ millions)10001112Cost of Goods Sold ($ millions)500556Other Expenses ($ millions)100111Depreciation ($ millions)100100Interest Expense ($ millions)5055Total Current Assets ($ millions)600700Total Fixed Assets ($ millions)22002500Accumulated Depreciation ($ millions)400This can be determined from the information givenNet Fixed Assets ($ millions)18002000Total Current Liabilities ($ millions)450550Long-term Liabilities ($ millions)900975Common Stock500This can be determined from the information givenThe firms plowback ratio (this ratio is also called the retention ratio and the reinvestment rate) is 60%The firms tax rate is 40% The required return on the companys stock is 10%1. Construct the firms income statements and balance sheets for 2009 and 2010.2. Calculate the firms cash flows (OCF, NCS, change in NWC, CFC, CFS, and FCF) for 2010. Assume all values are year-end values.