MicroDrives Financial Statements are below (all numbers are in millions of dollars)

Assets	2006	2007
Cash and equivalents	15	10
Short-term investments	65	0
Accounts receivable	315	375
Inventories	415	615
Total current assets	810	1,000

Net plant and equipment	870		1,000
Total assets	1680		2,000
Accounts payable	30		60
Notes payable	60		110
Accruals	130		140
Total current liabilities	220		310
Long-term bonds	580		754
Total debt	800		1,064
Common stock (50,000,000 shares)	170		170
Retained earnings	710		766
Total common equity	880		936
Total liabilities and equity	1,680		2,000
INCOME STATEMENT				2007
Net sales				$3,000.0
COGS Operating cost - Part I				$2,319
Gross Profits				$681.0
Operating Expenses Except Depreciation		Operating cost - Part II		$297.2
Depreciation (there is no amortization)				$100.0
Operating Profit				$283.8
Earnings before Income and Taxes (EBIT)				$283.8
Less interest				$88.0
Earnings before taxes (EBT) or Pre-tax income				$195.8
Taxes				$78.3
Net Income available to common stockholders				$117.5
Dividends				$61.5
Addition to retained earnings				$56.0

Using the data answer the following questions. Assume: i) all short-term operating and financing assets were converted to cash (and used) this year, ii) all short-term operating liabilities (to suppliers and other non-investors) were fully paid this year, and iii) All PPE that was sold, was sold at Book Value (no capital gains or losses), and iv) there are no deferred taxes