Two worksheets correspond to this assignment. One worksheet includes financial information for Nike and the other worksheet includes financial information for Caterpillar. Each worksheet includes the Balance Sheet and the Income Statement of the respective company. Below the Income Statement, you will find orange and blue boxes. Calculate the companys Free Cash Flow for the most current year by completing the orange color boxes in the worksheet. In addition, calculate the uses for each companys FCF by completing the blue boxes found below the FCF calculations.

When you have completed the worksheet for Nike and Caterpillar, write an analysis (one page per company) summarizing your results. In your analysis, interpret the meaning of each companys FCF value. Describe the breakdown of how each company used this FCF. Include all five categories. From this Usage indicate how each companys shareholders and debt holders were affected during 2016. For example, explain whether shareholders from each company contributed or received money from the company in 2016. Also, explain whether debt holders of each company contributed or received money from the company in 2016. Also indicate if either company used any of its free cash flow to purchase short term investments outside of the company. (30 points per company)

Calculate MVA in 2016 and 2015 for both companies. Did Nikes management create or destroy value for Nike between 2015 and 2016? Explain your answer. Did Caterpillars management create or destroy value for Caterpillar between 2015 and 2016? Explain your answer. (20 points per company)

Data Source is Morningstar.

Cite any additional sources you may use. Use APA style for in text citations and references.

H68 1 CATERPILLAR INC (CAT) BALANCE SHEET 2 Fiscal year ends in December. USD in millions except per share data. Assets 4 Current assets 5 Cash 6 Cash and cash equivalents 7 Total cash 8 Receivables nventories 10 Deferred income taxes 11 Prepaid expenses 12 Total current assets 13 Non-current assets 14 Property, plant and equipment 15 Gross property, plant and equipment 16 Accumulated Depreciation 17 Net property, plant and equipment 18 Equity and other investments 19 Goodwi 20 intangible assets 21 Deferred income taxes 22 Other long-term assets 23 Total non-current assets 24 Total assets 2012-12 2013-12 2014-12 2015-12 2016-12 5490 6081 7341 6460 7168 5490 6081 7341 6460 7168 18952 17176 16764 15686 14503 15547 12625 12205 9700 8614 1547 1553 1739 1526 988 900 818 1046 1682 42524 38335 38867 34418 31967 29932 31316 31572 31977 31940 -13471 -14241 -14995 -15887 -16618 16461 17075 16577 16090 15322 272 22 257 246 6942 6956 6694 6615 6020 4016 3596 3076 2g21 2349 594 1404 1654 2790 2011 17130 18068 17806 16653 16256 46832 46561 45814 44079 42737 89356 84896 84681 78497 74704 H68 1 CATERPILLAR INC (CAT) BALANCE SHEET 2 Fiscal year ends in December. USD in millions except per share data. Assets 4 Current assets 5 Cash 6 Cash and cash equivalents 7 Total cash 8 Receivables nventories 10 Deferred income taxes 11 Prepaid expenses 12 Total current assets 13 Non-current assets 14 Property, plant and equipment 15 Gross property, plant and equipment 16 Accumulated Depreciation 17 Net property, plant and equipment 18 Equity and other investments 19 Goodwi 20 intangible assets 21 Deferred income taxes 22 Other long-term assets 23 Total non-current assets 24 Total assets 2012-12 2013-12 2014-12 2015-12 2016-12 5490 6081 7341 6460 7168 5490 6081 7341 6460 7168 18952 17176 16764 15686 14503 15547 12625 12205 9700 8614 1547 1553 1739 1526 988 900 818 1046 1682 42524 38335 38867 34418 31967 29932 31316 31572 31977 31940 -13471 -14241 -14995 -15887 -16618 16461 17075 16577 16090 15322 272 22 257 246 6942 6956 6694 6615 6020 4016 3596 3076 2g21 2349 594 1404 1654 2790 2011 17130 18068 17806 16653 16256 46832 46561 45814 44079 42737 89356 84896 84681 78497 74704