Find change in Net Working Capital and Free Cash Flow for 2011. 40% corporate tax rate. Include cash in Net Working Capital.

Thank you! (will be using formula in excel to solve for future years)

2010 2011 Revenue 4,500 Revenue Growth Production Costs 575 Fixed Production Expense (excl depreciation) Variable Production Costs 2,035 Depreciation 1Total Production Costs 152 2,762 2Selling, General & Administrative 1,250 1,155 3Total Operating Expenses 4 1,250 3,917 5 Operating Profit 583 (1,250) Working Capital Assumptions: BMinimum Cash Balance as % of Sales 9Days Sales Outstanding 3.0% 59.2x Inventory Turnover (prod. cost/ending inv) 7.7x 1Days Payable Outstanding (based on tot. op. exp.) 30.8x 3Capital Expenditures 4 1470 952 2010 2011 Revenue 4,500 Revenue Growth Production Costs 575 Fixed Production Expense (excl depreciation) Variable Production Costs 2,035 Depreciation 1Total Production Costs 152 2,762 2Selling, General & Administrative 1,250 1,155 3Total Operating Expenses 4 1,250 3,917 5 Operating Profit 583 (1,250) Working Capital Assumptions: BMinimum Cash Balance as % of Sales 9Days Sales Outstanding 3.0% 59.2x Inventory Turnover (prod. cost/ending inv) 7.7x 1Days Payable Outstanding (based on tot. op. exp.) 30.8x 3Capital Expenditures 4 1470 952