Problems

1. Use the income statement and balance sheet shown below to develop the statement of cash flows.

Revenues	$5,700.00
COGS	$4,560.00
Gross Profit	$1,140.00
Operating Expenses	$500.00
Depreciation	$27.00
EBIT	$613.00
Interest Expense	$35.00
EBT	$578.00
Taxes	$231.20
NI	$346.80
Dividends	$0.00
ARE	$346.80

Balance sheet

	Year T+1	Year T
Cash and Equivalents	$714.80	$120.00
Accounts receivable	$500.00	$500.00
Inventory	$300.00	$340.00
Total Current Assets	$1514.80	$960.00
Fixed Assets	$660.00	$800.00
Accumulated Depreciation	$227.00	$200.00
Net Fixed Assets	$433.00	$600.00
Total Assets	$1947.80	$1560.00
Accounts Payable	$320.00	$300.00
Short term Notes Payable	$40.00	$50.00
Accruals	$11.00	$10.00
Total Current Liabilities	$371.00	$360.00
Long-term Debt	$780.00	$750.00
Total liabilities	$1,151.00	$1,110.00
Common Stock	$120.00	$120.00
Retained Earnings	$676.80	$330.00
Total Shareholders equity	$796.80	$450.00
Total Liabilities & Shareholders Equity	$1,947.80	$1,560.00

2. From the financial statements shown in problem 1, calculate the AFNWC.
3. From the financial statements shown in Problem 1, calculate g* (for year T+1). Assuming revenues of $5,050 in year t, how does this value compare to the realized growth in revenues between the years T and +1?