The following shows EFG Corporation's balance sheet for 2021 and 2021 (in millions of dollars):

The following is EFG Corporation's 2021 shareholder's equity statement (in millions of dollars):

The company's marginal tax rate is 30%. For the year 2021, the company recorded $10 million in interest income and $90 million in interest expense.

1(a) Prepare a reformulated balance sheet for 2020 and 2021.

1(b) Prepare a reformulated statement of common shareholder's equity for 2021.

1(c) Estimate the firm's free cash flow for 2021.
 
 

Operating cash Short-term debt investments Accounts receivable Inventory Property and plant 2021 2020 50 40 450 490 840 690 810 740 2,740 2,610 4,890 4,570 Accounts payable Accrued liabilities Long-term debt Preferred equity Common equity 2021 2020 1,100 290 940 100 350 1,740 1,870 100 1,660 1,310 4,890 4,570