5. Dexter Corporation ended the year with a net income of $500,000. Calculated in this net income number is $50,000 in depreciation expense. Over the year Dexter increased its current assets by $50,000 and increased its current liabilities by $20,000. Additionally, Dexter invested $90,000 in plant property and equipment. What is Dexters free cash flow for the year?

6. New Madrid Corporation has sales of $2,000,000 in its first year of business. Over this year variable costs of goods sold were 20% of sales. Fixed cost of goods sold were $200,000. Selling and administrative cost were $400,000 and taxes were 30% of pretax income. Please calculate New Madrid Corporations after-tax income.

7.Please start with the data in the prior problem concerning New Madrid Corporation. In projecting the proforma second years income statement for New Madrid, assume that sales increase by 20% in the second year of operation, variable costs of goods sold stay at 20% of sales, fixed cost of sales increase by 10% over the second year, selling and administrative cost increase by 5% and taxes remain at 30% of pretax profit. Please calculate New Madrid Corporations projected after-tax income for the second year of operation.

8. Caruthersville Corporation begins the year with $800,000 in plant property and equipment. This equipment is depreciated by $40,000 over the coming year. Over this same year, Caruthersville purchases additional equipment worth $70,000. What is the ending balance of the plant property and equipment account at the end of the year?