Use the companys financial data to answer the questions.

Profit and Loss Account for Year ending Dec 31 (in millions)
	2015	2014
Sales	11,000	10,000
Operating costs excluding depreciation	9,360	8,500
Depreciation	380	360
Earnings before interest and taxes	1,260	1,140
Less: Interest	120	100
Earnings before taxes	1,140	1,040
Taxes (40%)	456	416
Net income	648	624
Common dividends	220	200

Balance Sheets as of Dec 31 (in millions)
	2015	2014
ASSETS
Cash	550	500
Short-term investments	110	100
Accounts receivable	2,750	2,500
Inventories	1,650	1,500
Total current assets	5,060	4,600
Net plant and equipment	3,850	3,500
Total assets	8,910	8,100
LIABILITIES AND EQUITY
Accounts payable	1,100	1,000
Accruals	550	500
Notes payable	384	200
Total current liabilities	2,034	1,700
Long-term debt	1,100	1,000
Total liabilities	3,134	2,700
Common stock	4,312	4,400
Retained earnings	1,464	1,000
Total common equity	5,776	5,400
Total liabilities and equity	8,910	8,100

1) Determine the net operating profit after taxes for 2015.

2) What are the amounts of net operating working capital for 2015 and 2014?

3) Determine the amount of total net operating capital (invested capital) for 2015 and 2014.

4) What is the free cash flow for 2015?

5) What are the uses of free cash flow?

6) What is the return on invested capital for 2015?

7) Assume that the after-tax cost of funds is 14%. What is the economic value added for 2015?