Dear Tutor.

Kindly answer the attached question. Thank you.

Question 2 [25 marks[ Income Statement 5m Revenues EDD lDost of sales -1 11] Selling costs JD Depreciation 25 Operating Prot 95 Interest Expenses 6 Earnings belore taxes 3 Taxes 26. Net income 62. Li: Note: Dperang tax rate = SHE Marginal tax rate = 30% Required: a} Reorganize the nancial statements and calculate {i} NDF'LAT, [ii] Net Current Account or Working lDapital; {iii} Invested Capital, and {iv} Total Funds Invested. {2|} marks] Assets Balance Sheet Working cash Accounts receivable Inventories Current assets Property, plant and equipment Prepaid pension assets Total assets Ijabilities and Equity Account payable Shortterm debt Restructuring reserves Current liabilities Longtemi debt Retained Earnings Shareholders\" equity Total Liabilities 8: Equity 5m 15 35 15 65 155 1|] 23E! 1 1 1 T 1 2 4|] T5 BI] 35 230 b} A rm is considering making an acquisition with either borrowed cash or issued stock. With the cash acquisition, the earnings per share {EPS} after the acquisitions will increase by ears. The stock acquisition will increase EPS by onlyr 1%. Required: Explain why the purchase with cash can destroy more value or create less [5 marlts} value than the purchase with stock