Tax Rate: 40%

Calculate free cash flow and uses of cash: show working for NOPAT, NOWC, NET PPE, INTEREST PAID, DECREASE IN DEBT, DIVIDENDS PAID, STOCK REPURCHASE, & SHORT TERM INVESTMENTS

Balance Sheet Cash Accts Receivable Inventory Current Assets Gross Fixed Assets Accum Depreciation Net Fixed Assets Total Assets 2018 50 300 500 850 1,500 (500) 1,000 1,850 2019 25 330 550 905 1,650 (550) 1,100 2,005 Change (25) 30 50 55 150 (50) 100 155 Accts Payable Accured Liabilities Notes Payable Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Earnings Total Common Equity Total Liab & Equity 250 100 100 450 400 850 200 800 1,000 1,850 295 90 90 475 380 855 280 870 1,150 2,005 45 (10) (10) 25 (20) 5 80 70 150 155 Income Statement Sales Cost of Goods Sold Gross Profit Selling, General & Admin. Exp (SG&A) Depreciation Exp Earings Before Interest & Taxes (EBIT) Interest Exp Earnings Before Taxes Income Tax Expense Net Income Dividends 3,000 2,400 600 300 50 250 50 200 80 120 50