Subject: CORPORATE FINANCE Note: Please Write from a Computer or Laptop

Understanding the Financial Statements and Cash flows TOPICS ASSIGNMENT DIRECTION & REQUIREMENT/S Q1. t + SALES COGS INTEREST DEPA CASH A/RP CL INVENTORY LONGTERM DEBT NET FIXED ASSETS COMMON STOCK TAXES 2005+ 2006 50004 60004 3000+ 4000 300- 2004 1504 120-12 200+ 3002 e 1000- 1100- le 800- 1000 12 14004 1500- le 2000 1000- 4000 4100 1800+ 500+ 1900+ 600+ t a. What is the networking capital for 2006 b. What is the change in net working capital from 2005 to 2006? What is the net capital spending for 2006?- d. What is the operating cash flow for 2006?- C. e. What is the cash flow from assets for 2006? Cash flow from assets - Operating cash flow-Net capital spending- Change in net working capital- 2. AWAL has sales of $500,000, costs of $200,000, depreciation expense of $30,000, interest expense of $15,000, and a tax rate of 32 percent. The firm paid $40,000 in cash dividends. What is the addition to retained earnings