LaForge Systems, Inc. has net income of $285 million for the year 2008. Using information from the companys financial statements given here, show the adjustments to net income that would be required to find: A. FCFF.

B. FCFE.

C. In addition, show the adjustments to FCFF that would result in FCFE.

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Chapher 4 Free Ceslh Fioay Vaiuation 197 198 Equity Asset Valuation 2. Laforge Systems, Inc. has net income of $285 million for the year 2008. Using information from tbe company's financial statements given here, show the adjustments ra ner incame thar would he required to find A. ICET. A. FCFE C. In addition, show the adjustments to FCIthat would result in lCFL Interest expense Income before t Tes la 10 percent Ne income LaForge Systems, Inc. Balance Sheet In million 31 nrcemher 00 Stacement of Cash Flows 31 Dermber 2008 Current assers Operating activities Net income 5248 Accounts receivable Depieiatiou Toral current s Chinges in working capiral ALLOURES srveivahle Accumulaxed depreciation Accoums payable Aod t and expenses $5,101 Total assets Liabilities and shareholders' equiry Curnent lishilitica Accounts payable Notes payahe Rocrued aces and espenses Investing activities local current liabilitics Long term debt Common sck Soces payable Long-te m financing isuances Common stock dividends Ch onl f inning ctivities Cash and equivalents increase Idecrease) Cash and equivalents ar heginning nf year Cash and equivaeins al end of year Rerained earnings Total shareholders' equity Tntal liabilities and shareholden'equity Statement of Ineome 31 Devemlbea 2008 Interest paid Incnme caxrx paid Operating costs and expenses numbers of $3M9 and $40 for cash used for investing activities and cash used for financing activities. respectively, are unktstand to IX' nbmwsians, hn suse"cssh near is an m.flow