1. Determine the Cash Flow From Assets (FCF), Cash Flow to Creditors, and Cash Flow to Shareholders for the firm.

2. Assume you are sitting in a board meeting discussing the firms plans for sales growth. You are telling the board that you expect to grow sales by 7.5 %. After explaining your plan, a board member asks you for an estimate of how much funding you will need in 2020. What is your answer if you use the formula for External Funds Needed?

3. Now assume the board member asks whether you can achieve the growth holding your capital structure constant. What is your answer?

4. What is your answer if the board member asks if you can achieve the growth without issuing ANY new external financing?

5. Calculate the following ratios for the firm for 2019. (Chapter 3)

Current Quick Cash Debt

Equity Mult Cash Coverage Inventory Turn Days Sales in Inv

Rec Turn Days Sales Out Total Asset Turn Profit Margin

ROA ROE

6. Also calculate ROE using the expanded DuPont formula.

Assets: Cash Accounts Receivable Inventory Total Current 2019 2018 $ 160 $ 154 $ 525 $ 455 $ 497 $ 450 $ 1,182 ' $ 1,059 Balance Sheet Liab+Eq: Acc Payable Accruals Total Current $ $ $ 2019 2018 266 $ 100 200 $ 150 466 $ 250 Income Statement 2019 Sales $ 1,509 Cost of Goods Sold $ 900 Depreciation $ 90 Operating Income $ 519 350 Long-Term Debt Total Liab $ $ 224 $ 690 $ 600 Interest Expense $ 70 Net Fixed Assets Total Assets $ 1,650 $ 1,400 $ 2,832 $ 2,459 Pre-tax Income $ 449 55 $ 45 585 212 Taxes Net Income $ $ 237 Common @ Par Capital Surplus Retained Earnings Treasury Stock Total Eq Total Liab & Eq $ $ $ $ $ $ $ 1,552 $ (50) $ 2,142 $ 2,832 $ 494 1,370 (50) 1,859 2,459 55 Dividends Addition to RE's $ $ 182 Assets: Cash Accounts Receivable Inventory Total Current 2019 2018 $ 160 $ 154 $ 525 $ 455 $ 497 $ 450 $ 1,182 ' $ 1,059 Balance Sheet Liab+Eq: Acc Payable Accruals Total Current $ $ $ 2019 2018 266 $ 100 200 $ 150 466 $ 250 Income Statement 2019 Sales $ 1,509 Cost of Goods Sold $ 900 Depreciation $ 90 Operating Income $ 519 350 Long-Term Debt Total Liab $ $ 224 $ 690 $ 600 Interest Expense $ 70 Net Fixed Assets Total Assets $ 1,650 $ 1,400 $ 2,832 $ 2,459 Pre-tax Income $ 449 55 $ 45 585 212 Taxes Net Income $ $ 237 Common @ Par Capital Surplus Retained Earnings Treasury Stock Total Eq Total Liab & Eq $ $ $ $ $ $ $ 1,552 $ (50) $ 2,142 $ 2,832 $ 494 1,370 (50) 1,859 2,459 55 Dividends Addition to RE's $ $ 182