Assignment 2				Statement of Retained Earnings	2014	2015
				Opening balance of RE
INCOME STATEMENT	2014	2015		Add, Net Income
Sales		300,000		Less, Dividend
Cost of goods sold		187,500		= Closing Balance of RE
Other Expenses		28,500
Depreciation		22,500		Statement of Cash Flows	2014	2015
Total Operating Costs		238,500
EBIT		61,500		Op. Balance
Interest Expense		12,000		Operating Activities
EBT		49,500		Net Income
Tax (40 %)		19,800		Add, Depreciation
Net Income		29,700		Less, Increase in AR
				Less, Increase in Inv
BALANCE SHEET				Add, Increase in AP
Assets				Add, Increase in Accruals
Cash	3,000	3,600		Investing Activities
Short-Term Investments	7,500	7,500		Less, Cash used to acquire fixed assets
Accounts Receivables	30,000	34,500		Less, Increase in ST Investments
Inventories	60,000	69,000		Financing Activities
Total CA	100,500	114,600
Net FA	225,000	258,750		Add, Increase in Notes Payable
Total Assets	325,500	373,350		Add, Increase in LT Debt
				Add, Increase in Common Stock
Financed by:				Less, Dividend Payments
Accounts Payable	6,000	6,900		Closing Balance
Notes Payable	15,000	15,000
Accruals	15,000	17,250		Free Cash Flows
Total Current Liabilities	36,000	39,150			2014	2015
Long-term debt	112,500	139,125		NOPAT
Common Stock	102,000	102,000		Operating Capital
Retained Earnings	75,000	93,075		CA exclusing ST Investments
Total Equity	177,000	195,075		-- CL exclusind Notes Payable
Total Liabilities and Equity	325,500	373,350		Net Fixed Assets
				Total Operating Capital
Stock Market Information				Less, Increase in Oper. Capital
Stock Price		28
No. of shares		7,500		Free Cash Flow
Dividend per share ($)		1.55
WACC (%)		12%		ROIC
Tax (40 %)		40%
				EVA
				Market Value of Equity
				Less,Book Value of Equity
1. Prepare the statement of retained earnings 2. Prepare the statement of cash flows 3. Calculate Free Cash Flow 4. Calculate ROIC, EVA, and MVA				Market Value Added (MVA)