Question 1 (15 marks) ZUES COMPANY: BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2019 2018 Assets: Cash and marketable securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 36.0 2 540.0 $1,116.0 ? $2,016.0 $ 30.0 450.0 ? $1,080.0 ? $1,830.0 Liabilities and equity: Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock (50 million shares @ $3 per share) Retained earnings Total common equity Total liabilities and equity $ 324.0 201.0 216.0 $ ? 450.0 ? ? 675.0 $ 2 $2,016.0 $ 270.0 ? 180.0 $ 605.0 450.0 ? ? 625.0 $ ? $1,830.0 Sales for 2018 were $4,000. In 2019 sales increases by 10% Operating costs (excluding depreciation and amortization) is 80% of sales in 2018 and 70% of sales in 2019. Depreciation and amortization expenses for year 2018 are $150 and for year 2019 its $180. Interest Expense for year 2018 is $290 and for 2019 its $300. Corporate income tax is 40% Common dividends for 2018 and 2019 are $13.2 and $81.5 respectively. a. Calculate the missing value in the balance sheet. b. Make income statement for years 2018 and 2019. c. Calculate company's free cash flow (FCF) for the year 2019. d. Analyze the company's FCF. (This analysis is specific to the Zues Company, and does not require you to define FCF)