This worksheet contains data concerning the balance sheet, income statement, and value drivers of company XYZ. You know that company XYZ pays $6,000 of its debt every year and does not borrow more. The interest rate paid is on the average value of debt over the year, the interest earned on cash is on the average cash balance over the year, and the depreciation rate is on the average fixed assets at cost over the year. The company does not plan to issue or repurchase shares in the next 5 years.

(a) Make a pro forma model of XYZ's income statement and balance sheet for the next 5 years, using the given data.

(b) Calculate the free cash flows of XYZ for the next 5 years, based on your pro forma model from (a)