Nabors, Inc.

$2011$ Income Statement

$($S in millions$)$

Net sales

Less: Cost of goods sold

Less: Depreciation

Earnings before interest and taxes

Less: Interest paid

Taxable Income

Less: Taxes

Net income

$50510$

$1,370$

$1,930$

$630$

$$1,300$

$155$

$ $845$

Cash

Accounts rec.

Inventory

Total

Net fixed assets

Total assets

Nabors, Inc.

$2010$

and $2011$ Balance Sheets

$($$ in millions$)$

$2010$

$2011$

$ $310$ $ $405$

$2,6403,055$

$3,275\_3,850$

$6\mathrm{.}22557310$

$10,96010,670$

$$17,185$ $$17,980$

What is the free cash flow $($FCF$)$ in $2011?$

$2010$

$2011$

Accounts payable

$ $2,720$ $ $2,570$

Notes payable

$100$

Total

$ $2,820$ $ $2,570$

Long$-$term debt

$7,875$

$8,100$

Common stock

$5,000$

$5,250$

Retained earnings

$1,490$

$2,060$

Total liab.& equity

$$17,185$

$$17,980$

O $$1,580$

O $$1,335$

O $$950$

O $$845$

O $$430$