Q # 01: Exhibits 1 and 2 provide Cane's financial statements for the three years following incorporation. Starting with net income, calculate Cane's FCFF for 2019 and 2020 as there were no long- term asset sale in these years. EXHIBIT-1 2018 2019 2020 Earnings before interest, taxes, depreciation, and amortization 200 220 242 Depreciation expense 45 49.5 54.45 Operating income 155 170.5187.55 Interest expense (at 7 percent) 15.68 17.25 18.97 Income before taxes 139.32 153.25 168.58 Income taxes (at 30 percent) 41.845.971 50.58 Net income 97.521107.28 118 EXHIBIT-2 2018 2019 2020 Cash 108.92 228.74 360.54 Accounts receivable 100 110 121 Inventory 66 72.6 79.86 Current assets 274.921411.34 561.41 Fixed assets 500 550 6051 Less: Accumulated depreciation 45 94.5 148.95 Total assets 729.92 866.84 1017.45 Accounts payable 55 331 60.5 Current portion of long-term debt 0 0 0 Current liabilities 50 55 60.5 Long-term debt 246.4 271.04 298.14 Common stock 336 336 336 Retained earnings 97.52 204.8 322.8 Total liabilities and equity 729.92 866.64 1017.45