PROBLEM (32 MARKS) Use the below information from Bakers Inc.'s year-end financial statements to answer the following questions. Bakers Inc's applicable tax rate is 34%. Sales Depreciation Cost of Goods Sold Other Expenses Interest Cash Accounts Receivable Short-term Notes Long-term Debt Net Fixed Assets Accounts Payable Inventory Dividends Paid 2020 23,146,000 3,322,000 7,958,000 1,892,000 1,552,000 12,134,000 16,068,000 3,422,000 40,640,000 101,776,000 8,768,000 28,566,000 2,822,000 2021 25,872,000 3,472,000 9,414,000 1,648,000 1,852,000 12,932,000 18,854,000 2,294,000 49,392,000 108,546,000 9,288,000 30,576,000 3,236,000 a. Draw up the statements of financial position and the statements of comprehensive income for Bakers Inc. for 2020 and 2021. You can use Excel. (20 marks) b. For 2021, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders. (12 marks) PROBLEM 4 (9 MARKS) It was anticipated First Industries Incorporated would pay a cash dividend this year, as mentioned in Problem 3. However, the board of directors has approved the suspending of paying of dividends for the next 4 years as the company undertakes major expansion projects and reinvests all the earnings (100 percent retention ratio). The company anticipates it will start paying dividends again in year 5 where shareholders will receive $8.95 per share owned. Management expects that the dividends will grow at a constant rate of 4 percent per year after that forever. Investors would require a 15 percent rate of return. a. What would be the expected price per share today? Show your work. (4 marks) b. Based on your calculation above, do you think First Industries should take on the planned expansion projects or continue as per problem 3, that is, reject the new investment and continue to pay the dividends that will grow at 6.5 percent forever? Explain your answer. (2 marks) c. What is the minimum cash dividend the company would need to pay per share in year 5 if it is to maintain its current market price and continue with the expansion plan? Assume current price is $65 per share and constant dividend growth rate will still be at 4 percent. Show your work