Your supervisor has developed the given set of questions for you to answer:

1. Please select two stocks and determine their free cash flow from 2017 and 2018. (you can find the free cash flows in Yahoo Finance). What inference can you draw from the companies free cash flow? Please present your findings in a table.
2. Using the information and formulas from your textbook, please prepare two financial ratios for each stock, using the 2017 and 2018 financial statements, to include: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year (two ratios for each category per year). What challenges, strengths, or weaknesses do you see for each company? Please present your findings in a table.
3. Using the following information, please calculate free cash flow in Excel for years 2015 and 2016: Income Statements and Balance Sheet

Income Statements	2014	2015	2016
				Sales	$3,432,000	$5,834,400	$7,035,600
Cost of goods sold except depr.	2,864,000	4,980,000	5,800,000
Depreciation and amortization	18,900	116,960	120,000
Other expenses	340,000	720,000	612,960
Total operating costs	$3,222,900	$5,816,960	$6,532,960
EBIT	$209,100	$17,440	$502,640
Interest expense	62,500	176,000	80,000
EBT	$146,600	($158,560)	$422,640
Taxes (40%)	58,640	-63,424	169,056
Net income	$87,960	($95,136)	$253,584
Other Data	2012	2013	2014
Stock price	$8.50	$6.00	$12.17
Shares outstanding	100,000	100,000	250,000
EPS	$0.88	($0.95)	$1.10
DPS	$0.22	0.11	0.22
Tax rate	40%	40%	40%
Book value per share	$6.64	$5.58	$7.91
Lease payments	$40,000	$40,000	$40,000

Balance Sheets	2014	2015	2016
Cash	$9,000	$7,282	$14,000
Short-term investments	48,600	20,000	71,632
Accounts receivable	351,200	632,160	878,000
Inventories	715,200	1,287,360	1,716,480
Total current assets	$1,124,000	$1,946,802	$2,680,112
Gross fixed assets	491,000	1,202,950	1,220,000
Less: Accumulated depreciation	146,200	263,160	383,160
Net fixed assets	$344,800	$939,790	$836,840
Total assets	$1,468,800	$2,886,592	$3,516,952
Liabilities and Equity
Accounts payable	$145,600	$324,000	$359,800
Notes payable	$8.50	$6.00	$12.17
Shares outstanding	200,000	720,000	300,000
Accruals	136,000	284,960	380,000
Total current liabilities	$481,600	$1,328,960	$1,039,800
Long-term debt	323,432	1,000,000	500,000
Common stock (100,000 shares)	460,000	460,000	1,680,936
Retained earnings	203,768	97,632	296,216
Total equity	$663,768	$557,632	$1,977,152
Total liabilities and equity	$1,468,800	$2,886,592	$3,516,952