Balance sheet:

Current assets:

2016/ 2015

Cash: 150/50

Accounts Receivable: 150/200

Inventory: 500/ 400

Total 800/650

Fixed Assets:

Plant and equipment: 3800/3500

Accumulated depreciation: (1300)/(1000)

Net Plant and Equipment: 2500/2500

Total Assets: 3300/3150

Current liabilities:

Accounts Payable: 400/350

Total Current Liabilites: 1300/1450

Long term debt: 900/1100

Total liabilities: 1300/1450

Owners Equity:

Common Stock and paid in surplus: 600/500

Retained Earnings: 1400/1200

Total O/E: 2000/1700

Total Liabilities and O/E: 3300/3150

Income Statement:

Sales: 1800

Costs of Goods sold: 900

Depreciation: 300

General and administrative expense: 200

EBIT: 400

Interest Expense: 50

Taxable Income: 350

Income Tax Expense: 100

Net Income: 250

Dividends Paid: 50

Additions to returned earnings: 200

1.) Using the information presented in the Financial Statements above:

A.) Determine A Firm Inc.s Operating Cash Flow (OCF) for FYE 2016.

B.) Determine A Firm Inc.s Cash Flow From Assets (CFFA) for FYE 2016. Begin this calculation with OCF and adjust to CFFA.

C.) Determine A Firm Inc.s Cash Flow to Creditors for FYE 2016.

D.) Determine A Firm Inc.s Cash Flow to Shareholders for FYE 2016.

E.) Does your answer to C&D support your answer to B? Explain.

F.) What is the Firms Average Tax Rate for 2016?