LQ2. (20 points) I. During the year 2022, Cita Co reported sales and cost of good sold of $600 million and $300 million respectively. Depreciation was $150 million and interest paid was $30 million. It is assumed that the company was taxed at 34%. The Board of Directors of Cita declared a dividend of $30 million in that year. In addition, you found the below additional information for Cita Co for the Beginning net fixed asset = $500 million year 2022: (i) (ii) Ending net fixed asset = $750 million (iii) Beginning current asset = $2130 million (iv) Beginning current liabilities = $1620 million (v) Ending current asset = $2125 million (vi) Ending current liabilities = $1710 million (vii) No new equity raised during the period You note that Cash Flow From Assets = Cash Flow paid to Creditors + Cash Flow paid to Stockholders = Operating Cash Flow - Net Capital Spending - Changes in NWC (a) Please create an income statement of Cita Co for the year 2022. (4 points) (b) What is the operating cash flow for Cita for the year 2022? (4 points) (c) What is the net capital spending of Cita Co in the year 2022? Assume that sales of assets, if any, are at book value. (4 points) (d) What is the change in net working capital of Cita Co in the year of 2022? (4 points) II. Eight years ago, John bought the annual-coupon bond of Cita Co. Ltd. The coupon rate is 8%. Eight years ago, the yield-to-maturity of Cita bonds was 9%. When John bought the bond, the years to maturity of Cita bond then was 20 years. John has already held the bond for eight years as of today and he is selling Cita bonds today. The yield-to-maturity of Cita bond today is 11%. Calculate the price of Cita bond today. (4 points)