1. As of Dec. 31, 2000, the balance sheet of Green Inc. is shown as below:

Assets	Liabilities and Shareholders Equity
Cash 20,000 Accounts Receivable 0 Inventory (5 vehicles) 5000 Property Plant and Equipment (PPE) 10,000	Accounts Payable 0 Equity - Contributed Capital 35,000
TOTAL 35,000	TOTAL 35,000

During the year of 2001, the Green Inc. made the following transactions:

• Buys parts and supplies for $7,000 ($5,000 paid in cash and $2,000 on credit) and using these it assembles 7 vehicles using $1000 worth of parts for each vehicle.
• Sells 8 vehicles for $2,000 each ($10,000 in cash and $6,000 on credit)
• Accounts for depreciation of Property Plant and Equipment (straight line over 20 years)
• Recognizes a corporate tax liability (at 40% corporate tax rate) but defers the actual payment to a later year
• For a new project buys equipment worth $10,000. She pays $4000 from her cash balance and finances the rest by taking a loan from her bank in Jan, 2001
• In Dec, 2001, Green pays back $500 of the interest

Please do the following for the Greens Inc. based on the transaction information provided above and Greens Inc.s balance sheet as of Dec. 31, 2000.

1. Construct the income statement of Green Inc. for the year 2001
2. Construct the balance sheet of Green Inc. as of Dec 31, 2001
3. Derive the FCF of Green Inc.