1. Estimate the next four years FCF using 2015 actual data. Assume operating ratios remain unchanged from values in most recent year and sales will grow by 10%, 8%, 5%, and 5% for the next four years.

2.Using the given financial statements calculate AFN (Additional Funds Needed) for the next year. Assume sales growth rate is 10%. Also, calculate Self-supporting growth rate of the firm.

This is all the information, there are no missing values, if there are please specify

Lan & Chen Technologies: Income Statements for Year Ending December 31
(Thousands of Dollars)	2015	2014
Sales	$945,000	$900,000
Operating costs excluding depreciation and amortization	812,700	774,000
EBITDA	$132,300	$126,000
Depreciation	33,100	31,500
EBIT	$99,200	$94,500
Interest Expense	10,470	8,600
EBT	$88,730	$85,900
Taxes (40%)	35,492	34,360
Net income	$53,238	$51,540
Common dividends	$43,300	$41,230
Addition to retained earnings	$9,938	$10,310
Lan & Chen Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets	2015	2014
Cash	$47,250	$45,000
Short-term investments	3,800	3,600
Accounts Receivable	283,500	270,000
Inventories	141,750	135,000
Total current assets	$476,300	$453,600
Net fixed assets	330,750	315,000
Total assets	$807,050	$768,600
Liabilities and equity
Accounts payable	$94,500	$90,000
Accruals	47,250	45,000
Notes payable	26,262	9,000
Total current liabilities	$168,012	$144,000
Long-term debt	94,500	90,000
Total liabilities	$262,512	$234,000
Common stock	444,600	444,600
Retained Earnings	99,938	90,000
Total common equity	$544,538	$534,600
Total liabilities and equity	$807,050	$768,600