Problem 1 ( 7 points ):

	Balance Sheet
Assets:	Year 0:	Year 1:
Cash:	$ 231.53	$ 243.10
Other Current Assets:	$ 840.20	$ 915.40
Fixed Assets
At Cost:	$ 13,310.00	$ 14,641.00
Accum. Depreciation:		$ 6,701.70
Liabilities:
Current Liabilities:	$ 1,553.75	$ 1,925.26
Debt (Long Term):
Equity:
Common Stock ($1 Par):	$ 1,000.00	$ 1,000.00
Retained Earnings:		$ 4,069.56
	Income Statement	Income Statement
Sales:	$ 2,281.31	$ 2,623.51
COGS:	$ 868.22	$ 911.63
SGA:	$ 106.12	$ 108.24
Depreciation Expense:	$ 443.67	$ 488.03
Interest Expense:	$ 155.60	$ 168.24
Profit Before Taxes:	$ 707.71	$ 947.36
Taxes:	$ 247.70	$ 331.58
Profit After Taxes:	$ 460.01	$ 615.79
Dividend:	$ 161.00	$ 215.53
Paid to Retained Earnings:	$ 299.01	$ 400.26

Note: There is some rounding error in the above calculations.

Determine the following values:

Long-term debt for year 1: ________________________

Net Working Capital (NWC) for year 1: ________________________

Retained earnings for year 0: ________________________

Long-term debt for year 0: ________________________

Accumulated depreciation for year 0: ________________________

Accumulated depreciation for the year prior to year 0: ________________________

Net Working Capital (NWC) for year 0: ________________________

Problem 2 (17 points) :

Restate the Income Statements in Problem 1 using the following format:

	Year 0	Year 1
Sales:
Operating Expense:
Depreciation Expense:
EBIT:
Interest Expense:
EBT:
Taxes:
EAT:
Dividend:
Paid to Retained Earnings:

Calculate the following:

CFO (Cash Flow from Operations; Year 1): ____________________

CFA (Cash Flow from Assets; Year 1): ____________________

CFC (Cash Flow to Creditors; Year 1): ____________________

CFS (Cash Flow to Shareholders; Year 1): ____________________

FCF (Free Cash Flow; Year 1): ____________________

Reconcile the year 1 balance sheet using CFA (show your work and identify the values used throughout the calculation):

Note: It is not uncommon for reconciliation calculations to be in error by as much as $0.05.