OCF=operating cash flow

NCS-net capital spending

NWC= net working capital

CFS=cash flow to shareholders

CFC=cash flow to creditors

FCF=free cash flow

1. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement 2019 Revenues $20,000 Cost of Goods Sold $10.000 Other operating expenses $1,000 Depreciation expense $3.000 EBIT $6,000 Interest Expense $3,200 Taxable income $2.800 Taxes $840 Net income $1,960 Balance Sheet 2019 2020 2019 2020 Current Assets $10,000 $12,000 Current Liabilities $8,000 $9,000 Long-term debt $80,000 $88,000 Fixed Assets $170,000 $186,000 Total Debt $88,000 $97,000 Accumulated Depreciation $15,000 $18,000 Common Stock $8,000 $13,020 Net fixed assets S155,000 $168,000 Accumulated Retained Earnings $69,000 $69,980 Total Equity $77,000 $83,000 Total Assets $165,000 $180,000 Total Debt and Equity $165,000 $180,000