+ Automatic Zoom HW 2 due Feb 28 by class time in eCampus dropbox Turnitin will be used. You have to show your work in order to receive full credit | 1) Use the statement of CF for AT&T most recent annual report (6 points) a) Did CF from operating increase or decrease between 2019 and 2020? Explain why with details from the annual report b) Did CF from investing increase or decrease between 2019 and 2020? Explain with details from the annual report. c) Did CF from financing increase or decrease between 2019 and 2020? Explain why with details from annual report. 2) You are given the following items from financial statements: Computron's Balance Sheets (Millions of Dollars) Assets Cash and equivalents Short-term investments Accounts receivable 2018 2019 10 $ 60 50 100 10 400 520 Inventories 620 820 $ Total current assets $ 1,180 1,400 25F Mostly sunny Spring 2022 Accounts receivable Inventories 400 520 620 820 Total current assets $1,180 Gross fixed assets $ 3,900 Less: Accumulated depreciation Net fixed assets Total assets $2,900 $ $4,080 4,900 1,000 $ 1,400 $ 4.820 " 3.500 1.320 Liabilities and equity Accounts payable $ 300 400 Notes payable 50 250 Accruals 200 240 Total current liabilities $550 Long-term bonds 800 890 1.100- Total abilities $1,350 1990 m E R D F LL S 404 6 T Y 57 255 My y O G H J K L C V B N M P 2- Spring 2022 Common stock Retained earnings Total equity 1,000 1.730 1,000 1,910 $ $2.730 2,910 $ $4,080 4,900 Total liabilities and equity Computron's Income Statement (Millions of Dollars) Net sales Cost of goods sold (Excluding depr amort Depreciation and amortization 2018 2019 $ $5.500 6,000 4.300 4.800 290 320 Other operating expenses 350 420 $ Total operating costs $4.940 5540 Earnings before interest and taxes (EBIT) 560 $ 460 Les interest " 108 492 $ 352 Taxes Net Income 123 369 264 " % 5 20 E R T Y U 1 D F G H J K L X C V B N M Alt P All Spring 2022 Depreciation and amortization Other operating expenses Total operating costs Earnings before interest and taxes (EBIT) Less interest Pre-tax earnings Taxes Net Income 290 320 350 420 $ $4,940 5,540 560 $ 460 68 108 $ 492 S 352 123 88 $369 $ 264 a) Compute the tax rate (2 points b) Compute FCF for 2021. Show your work (4 points d Compute the five uses of FCF (4 point II E D C 259 Modily sy de P Me www % 5 6 7 B 9 0 R T Y U 1 0 LL F G H J K B N M