The following financial statements on Webb Enterprises apply to problems 19 through 22: Accounts Receivable Cash and Marketable Securities Balance Sheet 2015 $ 500 Inventories 6,000 9,500 Current Assets $ 16,000 Net Property Plant & Equipment 17,000 Total $ 33,000 Accounts Payable 7,200 Short-term Debt 6,800 Current Liabilities Long-term Debt $ 14,000 7,000 Total Liabilities $ 21,000 Total Owners' Equity 12,000 Total Liabilities and Owners' Equity $ 33,000 Income Statement 2015 30,000 Revenues Cost of Goods Sold (20,000) $ 10,000 Gross Profit (8,000) $ Operating Expenses Net Operating income Interest Expense Earnings before Taxes Taxes Net Income Projected growth rate in revenues Tax rate 2,000 154(900) $ 1,100 224(400) $1290700 20% 40% Sales Pro Forma Income Statement 2016 Cost of Goods Sold $ 36,000 Gross Profit (24,000) Operating Expenses $ 12,000 Net Operating Income (9,600) Interest Expense $ 2,400 (900) Earnings before Taxes $ 1,500 Taxes (600) Net Income $ 900 Pro Forma Balance Sheet 2016 Cash and Marketable Securities $ 500 Accounts Receivable 7,200 11,400 Inventories Current Assets $ 19,100 Net Property Plant & Equipment 20,400 Total $ 39,500 Accounts Payable $ 8,640 Short-term Debt 6,800 Current Liabilities $ 15,440 Long-term Debt 7,000 Total Liabilities $ 22,440 Total Owners' Equity 12,900 Total Liabilities and Owners' Equity $ 35,340 Additional Short-term Debt Needed $ 4,160 $3,000 58,300 19. What is Webb's projected Net Operating Profit After Tax for 2016? a. $900 b. $1,440 c. $2,400 d. $12,000 e. None of the above. 20. If depreciation expense for 2016 is projected to be $2,000, what will be the pro amount for capital expenditures in 2016? a. $0 b. $2,000 c. $3,400 d. $5,400 e. None of the above. 21. To calculate projected FCF to the firm for 2016, what is the change in opera working capital (where cash and marketable securities are not considered c assets) that you would use in calculating Webb's free cash flow? a. $1,660 b. $3,600 c. $8,300 d. $9,960 e. None of the above