Question 4. James Baker Corporation provided the following Statements for 2019-20 - Balance Sheet Assets 2020 $ 2019 $ Cash 40,000 70,000 Accounts Receivable 320,000 350,000 Inventory 460,000 320,000 Total Current Asset 820,000 740,000 Gross Fixed Assets 560,000 520,000 Accumulated Depreciation 180,000 150,000 Net Fixed Asset 380,000 370,000 Total Asset 1,200,000 1,110,000 Liabilities & Stockholders' Equity Current Liabilities Accounts Payable 390,000 320,000 Notes Payable 110,000 90,000 Accrued Expense 20,000 20,000 Total Current Liabilities Debenture Total Liabilities 520,000 430,000 320,000 350,000 840,000 780,000 Stockholders' Equity Common Stock at par Share Premium Reserve 100,000 100,000 150,000 150,000 Retained Earnings Total Liabilities & Stockholders' Equity 110,000 80,000 1,200,000 1,110,000 Income Statement Sales Cogs Gross Profit Operating Expenses 2020 $ 2,200,000 Operating Income (EBIT) Interest Earnings before Tax (EBT) Tax (30%) Earnings after Tax (Net Income) Dividend for Preferred Stockholders Earnings for Common Stockholders Dividend for Common Stockholders Retained Earnings 1,420,000 780,000 600,000 180,000 29,000 151,000 45,000 106,000 6,000 100,000 25,000 75,000 Prepare Cash from Operations using the direct method for the year 2020 Required A) (10) B) Calculate FCFF and FCFE. For 2020 (8)