9.

TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?

Select the correct answer.

a. $205

b. $210

c. $195

d. $215

e. $200

10.

Zumbahlen Inc. has the following balance sheet. How much total operating capital does the firm have?

Cash	$ 20.00		Accounts payable	$ 30.00
Short-term investments	50.00		Accruals	50.00
Accounts receivable	20.00		Notes payable	30.00
Inventory	60.00		Current liabilities	$110.00
Current assets	$150.00		Long-term debt	70.00
Gross fixed assets	$140.00		Common stock	30.00
Accumulated deprec.	40.00		Retained earnings	40.00
Net fixed assets	$100.00		Total common equity	$ 70.00
Total assets	$250.00		Total liab. & equity	$250.00

Select the correct answer.

a. $117.00

b. $121.50

c. $115.50

d. $120.00

e. $118.50