Q2.

Tobesco Corporation2020 and 2021 Balance sheets (in millions) 20202021ChangeAssets Current assetsCash8414662Accounts receivable16518823Inventory39342229Total current assets642756114Non-current assets Net plant and equipment27312880149Total assets33733636263Liabilities and Owners' EquityCurrent LiabilitiesAccounts payable31234432Notes payable231196-35Total current liabilities543540-3Non-current LiabilitiesBank loan531457-74Total liabilities1074997-77Owners' equityCommon stock and paid-in surplus50055050Retained earnings17992089290Total owners' equity22992639340Total liabilities and owner's equity33733636263

Tobesco Corporation2021 Income Statement (in millions) Sales 2311Cost of goods sold (1,344)Gross profit 967SG&A (40)Other operating expenses (40)EBITDA 887D&A (276)EBIT 611Interest income 76Interest expense (141)Other income 10Other expense (5)Profit before tax 551Tax expense (21%) (116)Net profit after tax 435 Dividend 145 Retained eanrings 290

Note: Net Operating Working Capital (NOWC) = OCA - OCL NOWC excludes cash & marketable securities and interest bearing liabilities Net Long Term Assets = LT Assets - LT Liabilities Net Debt = interest bearing debt - cash Net Interest Expense After Tax = (Interest Expense - Interest Income) x (1-tax) NOPAT = Net operating income + net interest expense after tax

Using the income statement and balance sheet, and formulas provided you are required to;

1. prepare a condensed financial statement as part of evaluating the business of Tobesco Corporation.
2. Evaluate Tobesco Corporation's level of working capital to support sales growth.