LQ$2.(20$ points$)$

I. During the year $2022,$ Cita Co reported sales and cost of good sold of $$600$ million and $$300$ million respectively. Depreciation was $$150$ million and interest paid was $$30$ million. It is assumed that the company was taxed at $34\%.$ The Board of Directors of Cita declared a dividend of $$30$ million in that year. In addition, you found the below additional information for Cita Co for the year $2022$:

$($i$)$ Beginning net fixed asset $=$$$500$ million

$($ii$)$ Ending net fixed asset $=$$$750$ million

$($iii$)$ Beginning current asset $=$$$2130$ million

$($iv$)$ Beginning current liabilities $=$$$1620$ million

$($v$)$ Ending current asset $=$$$2125$ million

$($vi$)$ Ending current liabilities $=$$$1710$ million

$($vii$)$ No new equity raised during the period

You note that Cash Flow From Assets $=$ Cash Flow paid to Creditors $+$ Cash Flow paid to Stockholders $=$ Operating Cash Flow $-$ Net Capital Spending $-$ Changes in NWC

$($a$)$ Please create an income statement of Cita Co for the year $2022.(4$ points$)$

$($b$)$ What is the operating cash flow for Cita for the year $2022?(4$ points$)$

$($c$)$ What is the net capital spending of Cita Co in the year $2022?$ Assume that sales of assets, if any, are at book value. $(4$ points$)$

$($d$)$ What is the change in net working capital of Cita Co in the year of $2022?(4$ points$)$

II$.$ Eight years ago, John bought the annual$-$coupon bond of Cita Co$.$ Ltd$.$ The coupon rate is $8\%.$ Eight years ago, the yield$-$to$-$maturity of Cita bonds was $9\%.$ When John bought the bond, the years to maturity of Cita bond then was $20$ years.

John has already held the bond for eight years as of today and he is selling Cita bonds today. The yield$-$to$-$maturity of Cita bond today is $11\%.$

Calculate the price of Cita bond today. $(4$ points$)$