Answer the following questions regarding the given Balance Sheet and Income Statement for a fictitious company. ($ in millions). Solve questions (a) (b) (c) and (d) below.

	Balance sheet as of Dec. 31, 2010
	Cash	$ 6,067				Accounts payable	$ 4,384
	Accounts receivable	8,034				Notes payable	1,171
	Inventory	14,283				Current liabilities	$ (1)
	Current assets	$28,384
						Long-term debt	$20,320
	Net fixed assets	$50,888				Owners' equity	$53,397
	Total assets	$79,272				Total liab. & equity	$79,272
	Balance sheet as of Dec. 31, 2011
	Cash	$ 6,466				Accounts payable	$ 4,644
	Accounts receivable	9,427				Notes payable	1,147
	Inventory	15,288				Current liabilities	$ 5,791
	Current assets	$31,181
						Long-term debt	$24,636
	Net fixed assets	$54,273				Owners' equity	$55,027
	Total assets	$85,454				Total liab. & equity	$85,454

2010 Income Statement 2011 Income Statement

	Sales	$ (2)		Sales	$12,936.00
	COGS	3,979.00		COGS	4,707.00
	Other expenses	946.00		Other expenses	824.00
	Depreciation	1,661.00		Depreciation	1,736.00
	EBIT	$ 4,987.00		EBIT	$ 5,669.00
	Interest	776.00		Interest	926.00
	EBT	$ 4,211.00		EBT	$ 4,743.00
	Taxes (34%)	1,431.74		Taxes (34%)	1,612.62
	Net income	$ 2,779.26		Net income	$ 3,130.38
	Dividends	$1,411.00		Dividends	$ (3)
	Additions to RE	1,368.26		Additions to RE	1,512.38

(5 points) Fill in the three blanks.

Suppose we are analyzing the cash flows occurred during 2011, answer (b) and (c).

(10 points) Calculate the OCF, NCS, and Changes in NWC. What is the CFFA?

(10 points) Calculate the CFC (cash flow to creditors) and CFS (cash flow to shareholders). Does the cash flow identity hold?

(10 points) Prepare the Pro Forma Income Statement for 2012 assuming the same sales growth rate as in 2011 using percentage of sales method. Depreciation, interest and divided payout ratio are assumed to be the same as in 2011.