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Use the LSP Co. income statement given below to answer the following 3 questions: Income Statement for Year Ending December 31, 2010 Sales $500,000 $150,000

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Use the LSP Co. income statement given below to answer the following 3 questions: Income Statement for Year Ending December 31, 2010 Sales $500,000 $150,000 S 350,000 $ 50,000 Operating costs excluding depreciation and amortization EBITDA Depreciation and Amortization EBIT Interest expense EBT Taxes (40%) Net Income $100,000 $ 200,000 $ 80,000 $ 120,000 8. Calculate the firm's operating income (EBIT) for the year 2010: * $ 300,000 $ 400,000 $ 200,000 $ 120,000 9. If LSP company reported a change in net working capital of $100,000, what would be its FCF? (Use the income statement above) $ 420,000 $ 40,000 $ 230,000 $ 50,000 10. LSP reported an increase in net fixed assets from $60,000 at the end of the year 2009 to $100,000 at the end of the year 2010. What is the capital expenditure? (Use the income statement above) * $ 40,000 $ 0 O $ 160,000 O $ 90,000

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