XYZ Corporation Income Statements for year ending December 31
	(thousands of dollars)
	2014	2013
Sales	1,500.0	1,200.0
Operating costs excluding depreciation	1,275.0	1,020.0
Depreciation	36.0	30.0
Earnings before interest & taxes (EBIT)	189.0	150.0
Less Interest	23.3	21.7
Earnings before taxes	165.7	128.3
Taxes (40%)	66.3	51.3
Net Income available to common stockholders	99.4	77.0
Common dividends	69.0	5.5
XYZ Corporation Balance Sheets as of December 31
	(thousands of dollars)
	2014	2013
Assets
Cash and equivalents	14.4	12.0
Short-term investments	0.0	0.0
Accounts receivable	225.0	180.0
Inventories	225.0	240.0
Total current assets	464.4	432.0
Net plant and equipment	360.0	300.0
Total Assets	824.4	732.0
Liabilities and Equity
Accounts payable	135.0	108.0
Notes payable	84.0	67.0
Accruals	90.0	72.0
Total current liabilities	309.0	247.0
Long-term bonds	180.0	180.0
Total liabilities	489.0	427.0
Common stock	55.0	55.0
Retained earnings	280.4	250.0
Common equity	335.4	305.0
Total liabilities and equity	824.4	732.0

Use the financial statements of the XYZ Corporation to answer problem

What is:

a) the Operating Cash Flow for 2014?

b) the change in Net Working Capital for 2014?

c) Capital Spending for 2014?

d) the Free Cash Flow (or Cash Flow from Assets) for 2014?

Calculate the financial ratio for XYZ Corp. for 14. The industry standard is provided in brackets. Also please comment on how XYZ Corp. fairs to the industry average.

1) Quick Ratio (Acid Test) {Industry average 1.3}

2) Day Sales in Receivables (also known as Average Collection Period) {Industry average 42}

3) Profit Margin {Industry average 5%}

4) Return on Common Equity (ROE) {Industry average 17%}