Exhibit 6.18 presents the income statement and reorganized balance sheet for BrandCo, an $800 million consumer products company. Using the methodology outlined in Exhibit 6.5, determine NOPLAT for year 1. Assume an operating tax rate of 25 percent. Using the methodology outlined in Exhibit 6.6, determine free cash flow for year 1.

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EXHIBIT 6.18 BrandCo: Income Statement and Reorganized Balance Sheet S million Income statement Reorganized balance sheet Today Year 1 73.6 4384 460.3 5085 533.9 Today Year 1 70.1 Operating costs Oparating profit Interest expense 800.0 B40.0 Operating working capital 640.0) (6720) Property and equipment 40.0) 42.0) Invested capital 1200 126.0 Debt 16.0) (6.0 Shareholders' equity 040 110.0 nvested capital 2000 210.0 302.5. 323.9 509.5 533.9 Earnings before taxes Taxes Net income (26.0) 127.5) 8.0 82.5