210 248 520 1325 2850 Exercise 7. Based on the financial statements given below, calculate: a) FCFF starting with the net income figure b) FCFE starting with the net income figure c) FCFE starting with EBITDA (and calculating first the FCFF) NB! Show all the calculations! BALANCE SHEET (as of Dec.31) 2018 2019 ASSETS Current Assets Cash and equivalents Accounts receivable 474 513 Inventory 564 Total Current Assets 1204 Gross fixed assets 2501 Accumulated depreciation 784 Net fixed assets Total Assets 3101 3391 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable 317 Notes payable 300 310 Accrued taxes and expenses 76 Total Current Liabilities 726 Long-term debt 1010 1050 Common stock 50 50 Additional paid-in capital 300 Retained earnings 1070 Total Shareholders' Equity 1420 1615 Total Liabilities and Shareholders' Equity 604 1897 2066 295 99 671 300 1265 3101 3391 2019 2215 INCOME STATEMENT Total Revenues Operating costs and expenses EBITDA Depreciation Operating Income (EBIT) Interest expense Income before tax Taxes (at 40%) Net income Dividends Change in retained earnings 1430 785 180 605 130 475 190 285 90 195 2019 285 180 -39 -44 22 23 427 CASH FLOW STATEMENT Operating Activities Net income Adjustments Depreciation Changes in working capital Accounts receivable Inventories Accounts payable Accrued taxes and expenses Cash provided by operating activities Investing Activities Purchases of fixed assets Cash used for investing activities Financing activities Notes payable Long-term financing issuances Common stock dividends Cash used for financing activities Cash and equivalents increase (decrease) Cash and equivalents at the beginning of year Cash and equivalents at the end of year Supplemental cash flow disclosures Interest paid Income taxes paid 349 349 -10 -40 90 40 38 210 248 130 190