3-11 FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries' 2007 and 2008 bal- ance sheets (in thousands of dollars) are shown. Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity 2008 $102,850 2007 $ 89,725 103,365 85,527 38,444 34,982 $244,659 $210,234 67,165 $311,824 $ 30,761 30,477 16,717 $ 77,955 42,436 $252,670 $ 23,109 22,656 14,217 $ 59,982 76,264 $154,219 63,914 $123,896 100,000 90,000 57,605 38,774 $157,605 $128,774 $311,824 Total liabilities and equity $252,670 a. Sales for 2008 were $455,150,000, and EBITDA was 15% of sales. Furthermore, deprecia- tion and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income in dividends. Given this informa- tion, construct the firm's 2008 income statement. b. Construct the statement of stockholders' equity for the year ending December 31, 2008, and the 2008 statement of cash flows. Calculate 2007 and 2008 net working capital and 2008 free cash flow. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?