Please use these formulas;

Based on the financial statements of 200X, we were able to retrieve the following accounting data for J&J plc.

1. Prepare the income statement?
2. Compute CFFA using both approaches.
3. Calculate the value of Net Capital Spending (NCS)?

Sales= 885.099 USD; AR = 580.040 USD, Depreciation Expense = 350.000 USD, Administrative Expenses = 255.000 USD, Unearned Revenues = 250.000 USD, Interest Expense = 40.000 USD, Tax Rate = 25%, COGS = 255.009 USD, Salaries & Wages Payable = 155.230 USD, New equity Issued= $10.000, AP = 380.044 USD, Outstanding debt paid off= $15.000, Changes in NWC = 150.000 USD

I. The cash flow identity Cash flow from assets = Cash flow to creditors (bondholders) + Cash flow to stockholders (owners) II. Cash flow from assets Cash flow from assets = Operating cash flow - Net capital spending - Change in net working capital (NWC) where Operating cash flow = Earnings before interest and taxes (EBIT) + Depreciation - Taxes Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation Change in NWC = Ending NWC - Beginning NWC II. Cash flow to creditors (bondholders) Cash flow to creditors = Interest paid - Net new borrowing V. Cash flow to stockholders (owners) Cash flow to stockholders = Dividends paid - Net new equity raised I. The cash flow identity Cash flow from assets = Cash flow to creditors (bondholders) + Cash flow to stockholders (owners) II. Cash flow from assets Cash flow from assets = Operating cash flow - Net capital spending - Change in net working capital (NWC) where Operating cash flow = Earnings before interest and taxes (EBIT) + Depreciation - Taxes Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation Change in NWC = Ending NWC - Beginning NWC II. Cash flow to creditors (bondholders) Cash flow to creditors = Interest paid - Net new borrowing V. Cash flow to stockholders (owners) Cash flow to stockholders = Dividends paid - Net new equity raised