Use the following financial statement information for Computron Corporation to answer parts (a) and (b) of this question.

1. What is the working capital requirement (WCR) for Computron Corporation in 2015 and 2016? Show your calculations.

2. What is Computrons net operating cash flow (NOCF) for 2016? Show your calculations.

3. What is Computrons free cash flow (FCF) for 2016? Show your calculations.

Income Statement (in millions)

	2015	2016
Net Sales	$1,000	$1,200
Cost of Goods Sold	710	900
Selling, General and Administrative Expenses	140	120
Depreciation Expense	25	30
Earnings Before Interest and Tax	125	150
Net Interest Expense	20.2	21.7
Earnings Before Tax	104.8	128.3
Income Tax Expense	41.9	51.3
Earnings After Tax	$62.9	$77
Dividends	4.4	60.5

Balance Sheet (in millions)

	12/31/2015	12/31/2016
Cash	$10	$12
Accounts Receivable	150	180
Inventories	200	180
Prepaid Expenses	20	23
Net Fixed Assets[1]	250	300
Total Assets	$630	$695
Short Term Debt	$71.5	$90
Accounts Payable	90	108
Accrued Expenses	60	72
Long-Term Debt	150	150
Owners Equity	258.5	275
Total Liabilities and Owners Equity	$10,250	$7,950