The following is the balance sheet for XYZ Corporation for 2019 and 2020 (in millions of...

 

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The following is the balance sheet for XYZ Corporation for 2019 and 2020 (in millions of dollars): 2020 2019 2020 2019 Operating cash 60 50 Accounts payable 1,200 1,040 Short-term debt 550 500 Accrued liabilities 390 450 linvestments Accounts receivable 940 790 Long-term debt 1,840 1,970 Inventory 910 840 Property and plant 2,840 2,710 Common equity 1,870 1,430 5,300 4,890 5,300 4,890 The following is the statement of shareholders' equity for XYZ Corporation for 2020 (in millions of dollars): Balance, end of year 2019 1,430 Share issues from exercised employee stock options 810 Repurchase of common shares (720) Cash dividend (180) Tax benefit from exercise of employee stock options 12 Unrealized gain on debt investments 50 Net income 468 Balance, end of year 2020 1,870 The firm's marginal tax rate is 40%. The firm reported $10 million in interest income and $90 million in interest expense for 2020. 1. Prepare a reformulated statement of common shareholder's equity for 2020. (6 marks) 2. Prepare a reformulated balance sheet for 2019 and 2020. (8 marks) 3. Estimate the fırm's free cash flow for 2020. (6 marks) The following is the balance sheet for XYZ Corporation for 2019 and 2020 (in millions of dollars): 2020 2019 2020 2019 Operating cash 60 50 Accounts payable 1,200 1,040 Short-term debt 550 500 Accrued liabilities 390 450 linvestments Accounts receivable 940 790 Long-term debt 1,840 1,970 Inventory 910 840 Property and plant 2,840 2,710 Common equity 1,870 1,430 5,300 4,890 5,300 4,890 The following is the statement of shareholders' equity for XYZ Corporation for 2020 (in millions of dollars): Balance, end of year 2019 1,430 Share issues from exercised employee stock options 810 Repurchase of common shares (720) Cash dividend (180) Tax benefit from exercise of employee stock options 12 Unrealized gain on debt investments 50 Net income 468 Balance, end of year 2020 1,870 The firm's marginal tax rate is 40%. The firm reported $10 million in interest income and $90 million in interest expense for 2020. 1. Prepare a reformulated statement of common shareholder's equity for 2020. (6 marks) 2. Prepare a reformulated balance sheet for 2019 and 2020. (8 marks) 3. Estimate the fırm's free cash flow for 2020. (6 marks)