Income Statement Sales Operating Costs Depreciation EBIT Interest EBT Taxes (40%) Net Income Assets Cash Accounts Receivable Inventories Current Assets Gross Plant & Equipment Less: Depreciation Net Plant & Equipment Total Liabilities & Equity Accounts Payable Notes Payable Accruals Current Liabilities Long-Term Debt Common Stock Retained Earnings Total Year 1 Year 2 $1,000.00 $1,200.00 -$850.00 -$1,020.00 -$50.00 -$55.00 $100.00 -$20.00 $80.00 -$32.00 RE $48.00 Year 1 $10.00 $150.00 $200.00 $360.00 $1,000.00 -$500.00 $500.00 $860.00 Year 1 $90.00 $50.00 $60.00 $125.00 -$25.00 $100.00 -$40.00 $60.00 Year 2 $15.00 $200.00 $250.00 $465.00 $1,100.00 -$555.00 $545.00 $1,010.00 Year 2 $120.00 $50.00 $80.00 WO TONTON $200.00 $250.00 $150.00 $210.00 $382.00 $382.00 $128.00 $168.00 $860.00 $1,010.00

Keeping in mind that notes payable are interest bearing obligations and are thus not part of the firm's current operating liabilities (COL), calculate the firm's Free Cash Flow (FCF) for Year 2 +$25 $0 $25 $50 $75 Keeping in mind that notes payable are interest bearing obligations and are thus not part of the firm's current operating liabilities (COL), calculate the firm's Free Cash Flow (FCF) for Year 2 +$25 $0 $25 $50 $75