5.Measure the free cash flow of the firm.

2020 FCF = 2020 NOPLAT + 2020 Depreciation - 2020 net investment NOPLAT = EBIT - taxes Net investment = Net Capital Spending + Change in net working capital (NWC) Net capital spending = ending net fixed assets - beginning net fixed assets + depreciation

Change in net working capital = ending NWC - beginning NWC

6. Find NWC in 2020 and 2019 in Table 2.

INCOME STATEMIENT Net Sales Cost of Goods sold Depreciation Selling \& Administrative Expenses Earnings Before Interest and Taxes Interest Paid Taxable Income Taxes (40\%) Net Income Dividends Addition to Retained Earnings Table 2 BALANCE SHEET ASSETS Cash Accounts Receivable Inventories Total Current Assets NWC Gross Fixed Assets Accumulated Depreciation Net Fided Assets Total Assets LLABLITIES \& EQUITY Accounts Payable Notes Payable Total Current Liabilities Long-term Debt Common-stock and Paid in Surplus (200.000 shares outstandiog) Retained Eamings tota1 2020 2019 2,050,000 1,678,894 1,537,500 1,343,115 79.000 51,000 40,000 32,945 393,500 251,834 155,000 44,000 238,500 207,834 83,134 143,100 124,700 37.410 100,170 37.290 2020 2019 5,000 40.000 540.000 200,000 1,300,450 650,000 1.845450 890,000 950.450 535,000 1.300,000 510.000 232.000 153,000 1.068 .000 357,000 \begin{tabular}{|} \hline 2.913 .450 & 1.247,000 \\ \hline \end{tabular} \begin{tabular}{|l} 145.000 \\ 750,000 \\ 895.000 \end{tabular}55,000300000355.000 1.226 .280 200,000 \begin{tabular}{|r|r|} \hline 600.000 & 600.000 \\ 192.170 & 92000 \\ \hline 2913.450 & 1247.000 \\ \hline \end{tabular}