The following are the information that relate to the cash flow statement of the company:

Operating Activities

Net Income ($ 95,136)

Adjustments: Depreciation 116,960 Change in AR (280,960) Change in inventories (572,160) Change in AP 178,400 Change in accruals 148,960

Net cash provided (used) by ops. ($503,936)

Investing Activities

Cash used to acquire FA ($711,950) Change in S-T invest. 28,600

Net cash prov. (used) by inv. act. ($683,350)

Financing Activities

Change in notes payable $ 520,000 Change in long-term debt 676,568 Payment of cash dividends (11,000)

Net cash provided (used) by fin. act. $1,185,568

Tax rate is 40% and the inflation rate is 3.5%

1. Using the WACC 12%, determine the continousing value in terminal year in the free cash flow growth rate of 4.5%.

2. Using the Mid Year disounts rate and WAAC 12%. Detemine the intrinsic enterprise value.

Pleae help me solve these problems.