1. Below you will find the Stiller Corporation financials for the year 2018 and 2019.

Table 7

Stiller Corporation Comparative Balance Sheet (2018-2019) in USD

#	TEXT	2019	2018
1	Cash	$157,000	$78,000
2	Accounts Receivable	180,000	185,000
3	Investments	52,000	74,000
4	Equipment	298,000	240,000
5	Less accumulated depreciation	(106,000)	(89,000)
6	Current liabilities	134,000	151,000
7	Common stock	160,000	160,000
8	Retained earnings	287,000	177,000

Additional information:

Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.

1. Prepare a statement of cash flows for 2019 for Stiller Corporation.

2. Calculate the companys free cash flow.

3. Assuming the 2019 cash flows grow at the rates of 20%, 18%, 15% in 2020, 2021, and 2022 respectively, and then stabilize at 10%, calculate the current value of Stiller Corporation. Assume the companys weighted average cost of capital is 12%.