Problem $7-1$

Ogier Incorporated currently has $$800$ million in sales, which are projected to grow by $12\mathrm{.}5\%$ in Year $1$ and by $5\%$ in Year $2.$ Its operation profitability ratio $($OP$)$ is $10\%,$ and its capital requirement ratio $($CR$)$ is $80\%.$

$7-1$a What are the projected sales in Year $1$ and $2?$

$7-1$b What are the projected amounts of net operating profit after taxes $($NOPAT$)$ for years $1$ and $2?$

$7-1$c What are the projected amounts of total net operating capital $($OpCap$)$ for Years $1$ and $2?$

$7-1$d What is the projected FCF for Year $2?$