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Sales Revenues $100 Cost of goods sold 31 Fixed costs 15 Selling, general, and administrative expenses 23 Depreciation 8 EBIT Taxes Net Operating Profits after

Sales Revenues $100
Cost of goods sold 31
Fixed costs 15
Selling, general, and administrative expenses 23
Depreciation 8
EBIT
Taxes
Net Operating Profits after Taxes (NOPAT)
*** Tax rate 40%
Dividends paid $10
Partial Balance Sheet 12/31/2019
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash $4 Accruals $7
Accounts receivable 6 Accounts payable 4
Inventories 5 Total current liabilities
Total current assets Long-term debt 20
Total Liabilities
Gross Fixed assets 70 OWNERS EQUITY
Accumulated depreciation 10 Retained earnings (1)
Net Fixed assets Common stock
Intangible assets 0 Total owner's equity
TOTAL ASSETS TOTAL LIABILITIES & OWNERS EQUITY
(1) These are cumulative retained earnings but textbook simply calls it retained earnings
Partial Balance Sheet 12/31/2020
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash $3 Accruals $6
Accounts receivable 3 Accounts payable 4
Inventories 7 Total current liabilities
Total current assets Long-term debt

15

Gross Fixed assets 101 Total liabilities 25
Accumulated depreciation OWNERS EQUITY
Net Fixed Assets Retained earnings
Intangible assets 0 Common stock
Total long-term assets Total owner's equity
TOTAL ASSETS TOTAL LIABILITIES & OWNERS EQUITY

The Free Cash Flow (FCF) for 2020 is _____________

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