Practice Practical Question Cash and cash equivalents Accounts receivable Bonds Receivable Inventories Building 2013 2012 23,000 20,000 1,000 500 1,800 3,000 2,000 1,500 29,000 26,000 Accounts payable 1,000 2,000 Bonds payable 6,000 6,000 Book value (net) 49,800 43,000 Sales 25,000 Operating expenses 15,000 Interest revenue 50 Interest expense 600 Tax expense (rate = 30%) 2,808 Net Income 6,642 Required: 1. Calculate NOA, NOPAT, FCF and Dividends for the current year; 2. Supply the inputs into the following equation: ROE PM x ATO+FLEV (RNOA - NBC) 3. It is predicted that SP Ltd will grow sales by 15% each year. ATO is assumed to remain stable and profit margin is expected to be 20% in 2014 and remain there. The cost of capital for the firm is 10% and the cost of capital for equity is 12%. Forecast NOPAT, NOA and FCF for the next three years.