Question 4. Use the financial statements of Benign company below:

Calculate FCF using the three methods:

Method 1. FCF = Adjusted CFO Adjusted CFI

Method 2. FCF = NOPAT Change in NOA

Method 3. FCF Statement

Balance Sheet as of December 31 2014 2015 Assets Cash A/R Inv $ 1,000 1,500 $ 1,100 1,650 2,200 $ 4,950 2,000 Total CA $ 4,500 PPE (at cost) Acc. Depreciation Net PPE 11,000 (4,500 6,500 12,150 (5,100) 7,050 Total assets $11,00 $12,000 Liabilities and Equity Accrued liabilities A/P Notes/Payable TotalCL $ 800 1,200 5,500 $ 7,500 $ 880 1,320 6,050 $ 8,250 Long-term debt Common stock R/E 2,000 1,000 500 1,602 1,000 1,148 Total liabilities and equity $11,00 $12,000 Income Statement for the year Ending December 31, 2015 Sales CGS Depreciation SG&A Interest expense Taxable income Taxes $10,000 6,000 600 1,000 600 $ 1,800 720 Net Income $ 1,080 Balance Sheet as of December 31 2014 2015 Assets Cash A/R Inv $ 1,000 1,500 $ 1,100 1,650 2,200 $ 4,950 2,000 Total CA $ 4,500 PPE (at cost) Acc. Depreciation Net PPE 11,000 (4,500 6,500 12,150 (5,100) 7,050 Total assets $11,00 $12,000 Liabilities and Equity Accrued liabilities A/P Notes/Payable TotalCL $ 800 1,200 5,500 $ 7,500 $ 880 1,320 6,050 $ 8,250 Long-term debt Common stock R/E 2,000 1,000 500 1,602 1,000 1,148 Total liabilities and equity $11,00 $12,000 Income Statement for the year Ending December 31, 2015 Sales CGS Depreciation SG&A Interest expense Taxable income Taxes $10,000 6,000 600 1,000 600 $ 1,800 720 Net Income $ 1,080