Question 5. Use the financial statements of Laconic 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

Income Statement Revenues: Sales $1,400 Gain on sale of equipment 30 $1430 Expenses: CGS Advertising expense Depreciation Rent Wages Interest expense on bonds Income tax 800 50 70 40 110 14 72 1,156 $ 274 Comparative Balance Sheet Cash A/R Inv Prepaid rent Equipment Accumulated depreciation Totals 2014 $ 75 32 62 6 181 (16) $340 2015 $282 67 187 16 201 (51) $702 $ 15 20 60 A/P Wages payable Income tax payable Bonds payable Common stock R/E Totals 125 $105 30 68 125 100 274 $702 100 20 $340 Income Statement Revenues: Sales $1,400 Gain on sale of equipment 30 $1430 Expenses: CGS Advertising expense Depreciation Rent Wages Interest expense on bonds Income tax 800 50 70 40 110 14 72 1,156 $ 274 Comparative Balance Sheet Cash A/R Inv Prepaid rent Equipment Accumulated depreciation Totals 2014 $ 75 32 62 6 181 (16) $340 2015 $282 67 187 16 201 (51) $702 $ 15 20 60 A/P Wages payable Income tax payable Bonds payable Common stock R/E Totals 125 $105 30 68 125 100 274 $702 100 20 $340