Question: Use the information below to answer problems 5-11. The firm's plowback ratio is 60% and the average tax rate is 30%. 2015 2016 Sales $3,500

Use the information below to answer problems 5-11. The firm's plowback ratio is 60% and the average tax rate is 30%.

2015 2016
Sales $3,500
Cost of Goods Sold $1,800
Depreciation Expense $875
Interest Expense $425
Current Assets $2,000 $2,500
Total Fixed Assets $6,200 $7,300
Accumulated Depreciation $1,300 This can be determined from the information given
Current Liabilities $1,300 $1,500
Long-term Debt $3,500 $3,700
Common Stock $1,200 This can be determined from the information given

1-What is the 2016 CFC?

2-What is the 2016 CFS?

3-Show that the FCF calculated as the sum of CFC and CFS is the same as the FCF calculated using OCF, NCS, and change in NWC.

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