1. Calculating Cash Flow: For This Year of Bhalu Belltronics a) Calculate the operating cash flow? b) What is the change in working capital from last year? c) Calculate purchase of new assets? d) What is the cash flow to bondholders (debtholders)? e) What is the cash flow to stockholders? f) Show that the cash flow to assets equal cash flow to bondholders plus cash flow to stockholders? 2. For Bhalu Belltronics a) Calculate the internal growth rate? b) Calculate the sustainable growth rate? c) Calculate the EFN using the percentage of sales method if Bhalu electronics wants to grow at the rate of 25% 3. Bhalu Belltronics took out an amortized loan of $ one million with a maturity of 3 years. The loan is to be paid off in three equal annual installments. Calculate the annual payments and construct an amortization schedule? What is the amount of interest Bhalu Belltronics paid on the loan? Bhalu Belltronics (Dollars in thousands) Income Statement This Year $52,000 36,000 16,000 Sales Cost of goods sold Gross Margin 7,000 5,860 12,860 Selling and administrative expenses Selling Expenses Administrative Expenses Total S&A Expenses Net Operating Income (EBIT) Interest Expense Net Income before taxes (EBT) Income taxes (30%) Net Income 3,140 640 2,500 750 $ 1750 Dividends Transferred to Retained Earnings 720 $ 1030 Bhalu Belltronics Balance Sheet (dollars in thousands) This Year Last Year $ $ Assets Current assets Cash Accounts receivable, net Inventory Total current assets 1,200 6.000 8,300 15,500 2,350 4,000 10,120 16,470 Fixed assets Total assets 16,000 $ 31,500 12,500 $ 28,970 $ Liabilities and Stockholder's Equity Current liabilities Accounts payable Notes payable Total current liabilities Long-term liabilities Bonds Total Liabilities $ 5,800 1,200 7,000 4,000 1,000 5,000 7,500 14,500 8,000 13,000 Stockholders equity Common stock Retained earnings Total stockholders' equity Total liabilities & equity 9,000 8,000 17,000 $ 31,500 9,000 6,970 15,970 $ 28,970