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ZUES COMPANY: BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2018 2019 Assets: Cash and marketable securities $ 36.0 $ 30.0 Accounts receivable

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ZUES COMPANY: BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2018 2019 Assets: Cash and marketable securities $ 36.0 $ 30.0 Accounts receivable 2 450.0 Inventories 540.0 ? Total current assets $1,116.0 $1,080.0 Net plant and equipment ? Total assets $2,016.0 $1,830.0 Liabilities and equity: Accounts payable $ 324.0 $ 270.0 Notes payable 201.0 ? Accruals 216.0 180.0 Total current liabilities $ ? 605.0 Long-term bonds 450.0 450.0 Total debt ? ? Common stock (50 million shares @ $3 per share) ? ? Retained earnings 675.0 625.0 Total common equity $? Total liabilities and equity $2,016.0 $1,830.0 $ Sales for 2018 were $3,000. In 2019 sales increases by 20% and the corporate income tax is 35% Operating costs (excluding depreciation and amortization) is 85% of sales. Depreciation and amortization expenses for year 2018 are $75 and for year 2019 its $90. Interest Expense for year 2018 is $60 and for 2019 its $65. . Common dividends for 2018 and 2019 are $13.2 and $81.5 respectively. a. Calculate the missing value in the balance sheet. (2 marks) b. Make income statement for years 2018 and 2019. (4 marks) c. Calculate company's net operating profit after taxes (NOPAT) for 2019? (2 marks) d. Calculate company's free cash flow (FCF) for the year 2019. (2 marks) e. Analyze the company's FCF. (This analysis is specific to the Zues Company, and does not require you to define FCF)

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