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China Gold Mining produces and markets gold. The following are selected numbers from the financial statements for 2019 and 2020 (in millions). 2019 2020 Revenues

China Gold Mining produces and markets gold. The following are selected numbers from the financial statements for 2019 and 2020 (in millions).

2019

2020

Revenues

$8,494.0

$9,000.0

(Less) Operating Expenses

($6,424.0)

($6,970.0)

(Less) Depreciation

($872.0)

($860.0)

= EBIT

$1,198.0

$1,170.0

(Less) Interest Expenses

($510.0)

($515.0)

(Less) Taxes

($362.0)

($420.0)

= Net Income

$326.0

$235.0

Working Capital

($45.0)

($50.0)

Total Debt

$5.45 billion

$5.00 billion

The firm had capital expenditures of $950 million in 2019 and $1 billion in 2020. The working capital in 2018 was $190 million, and the total debt outstanding in 2018 was $5.75 billion. There were 300 million shares outstanding, trading at $25 per share.

A. Estimate the cash flows to equity in 2019 and 2020

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