For the years ending 2013 and 2014, construct a statement of cash flows. How does this statement highlight the operating results and financing decisions of Blue Ridge?

 2. For the years ending 2013 and 2014, calculate the free cash flow generated by Blue Ridge. 

3. For the years ending 2013 and 2014, verify that free cash flow is equal to the cash flow to providers of capital. This would be the sum of the dividend, the net payment to debt holders (can be negative if the business is increasing debt), and the interest payment (net of tax effects) paid to the debt holders

 

 

		2012	2013	2014	2015
Net sales		5,842	7,301	9,132	11000
Total cost of goods sold		3,892	4,957	6,310	7590
Gross profit		1,950	2,344	2,822	3410
Operating expenses		1,587	1,855	2,257	2750
Earnings before interest and taxes		363	489	565	660
Interest expense		54	59	65	65
Income before income taxes		309	430	500	595
Provision for income taxes		83	116	135	161
Net income		226	314	365	434

		2012	2013	2014	2015
Cash		186	209	180	330
Accounts receivable		252	334	457	571
Inventory		732	934	1,254	1432
Current assets		1,170	1,477	1,891	2333
Net property		522	645	832	1012
Total assets		1,692	2,122	2,723	3345
Accounts payable		379	492	587	734
Accrued expenses		83	122	152	154
Bank line of credit		26	40	101	101
Current liabilities		488	654	840	989
Term loan		650	650	750	750
Total liabilities		1,138	1,304	1,590	1739
Owners' equity		554	818	1,133	1498
Total liabilities and net worth		1,692	2,122	2,723	3237