Based on the following income statement and balance sheet; compute the expected free cash flow to equity in 2009. 2009 Forecast 2008 actual Sales 760 650 Cost of goods sold 410 320 Gross Profit 350 330 Depreciation 120 90 EBIT 230 240 Interest expenses 50 70 Pre-tax earnings 180 170 Taxes (30%) 54 51 Net Income 126 119 ABC Corp. Balance Sheet 2009 Forecast 2008 actual 2009 Forecast 2008 actual Cash 90 110 Accounts payables 70 65 Accounts Receivables 215 190 Short-term debts 439 495 Inventory 650 590 Current assets 955 890 Current liabilities 509 560 Property, plant and equ. 1,300 1,180 Long-term debt 320 250 Accu. Depreciation (200) (160) Common stock 900 900 Retained earnings 326 200 Total assets 2,055 1,910 Total liabilities and owners equity 2,055 1,910 Question 8 options: 1) $45 2) $53 3) $60 4) $68

Question 29 (3.33 points) Based on the following income statement and balance sheet: compute the expected free cash flow to the firm in 2009. 11 12 15 2008 actual 650 320 17 18 2009 Forecast Sales 760 Cost of goods 410 sold Gross Profit 350 Depreciation 120 EBIT 230 Interest expenses 50 Pre-tax earnings 180 Taxes (30%) 54 Net Income 20 21 330 90 240 70 170 51 119 23 24 126 26 27 30 ABC Corp Balance Sheet 2009 2008 Forecast actual Cash 90 110 2009 Forecast 70 2008 actual 65 215 Accounts payables Short-term debts 190 439 Accounts Receivables Inventory Current assets 495 650 955 590 890 560 1.300 1.180 250 Property, plant and egu Accu Depreciation (200) (160) 900 Current 509 liabilities Long-term 320 debt Common 900 stock Retained 326 earnines Total liabilities 2,055 and owners equity 200 Total assets 2,055 1.910 1.910 11 581 21 $92 3) $101 4) $100 hp