INCOME STATEMENTS (MILLIONS OF DOLLARS) 2018 2017 Sales $3,600.0 $3,000.0 Operating costs 3,060.0 2,550.0 EBITDA $ 540.0 $ 450.0 Depreciation and amortization 90.0 75.0 Earnings before interest and taxes S_450.0 $ 375.0 Interest 65.0 60.0 Earnings before taxes $385.0 $ 315.0 Taxes (40%) 154.0 126.0 Net income available to common stockholders $ 231.0 $ 189.0 Common dividends $ 181.5 $ 139.0 BALANCE SHEETS (MILLIONS OF DOLLARS) 2018 2017 Cash $ 36.0 $ 30.0 Accounts receivable 540.0 450.0 Inventories 540.0 600.0 Total current assets $1,116.0 $1,080.0 Net plant and equipment 900.0 750.0 Total assets $2,016,0 $1.830,0 Liabilities and equity: Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total debt Common stock (50 million shares) Retained earnings Total common equity Total liabilities and equity $ 324.0 216.0 201.0 $ 741.0 450.0 $1,191.0 150.0 675.0 $ 825.0 $2.016.0 $ 270.0 180.0 155.0 $ 605.0 450.0 $1,055.0 150.0 625.0 $ 775.0 $1.830.0 2. What is the amount of total operating capital (O.C) for 2018? O.C = NOWC + Net fixed asset 3 pts 3. What is the amount of Free Cash Flow for 2018? FCF = EBIT(1-Tax) - change in total operating capital investment 3pts | 4. Calculate the ROIC for 2018 and interpret the result if cost of capital (WACC) = 10%. ROIC = NOPAT / Operating Capital 3pts