Using the data from Years n and n-1 below, answer the following questions. 1. What are...

 

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Using the data from Years n and n-1 below, answer the following questions. 1. What are the company's liabilities and equity in Year n and n-1? (Worth 1 Point) 2. What is the company's net income in Year n and n-1? (Worth 1 Point) 3. What is the company's free cash flow in Year n? (Worth 4 Points) 4. As an investor, explain how you would use net income and free cash flow in evaluating the company. (Worth 4 Points) I Short-term investments Interest Depreciation and amortization Common dividends Cash Accruals Notes payable Accounts payable Long-term debt Inventories Accounts receivable Common stock Operating costs excluding depreciation Sales Tax rate Net plant and equipment Year 1 250 350 500 550 550 1,000 1,100 1,500 1,650 2,750 5,000 9,000 10,000 40% 4,000 Year n-1 100 100 700 500 500 500 200 1,000 1,000 1,500 2,500 4,000 9,500 12,500 40% 4,200 Using the data from Years n and n-1 below, answer the following questions. 1. What are the company's liabilities and equity in Year n and n-1? (Worth 1 Point) 2. What is the company's net income in Year n and n-1? (Worth 1 Point) 3. What is the company's free cash flow in Year n? (Worth 4 Points) 4. As an investor, explain how you would use net income and free cash flow in evaluating the company. (Worth 4 Points) I Short-term investments Interest Depreciation and amortization Common dividends Cash Accruals Notes payable Accounts payable Long-term debt Inventories Accounts receivable Common stock Operating costs excluding depreciation Sales Tax rate Net plant and equipment Year 1 250 350 500 550 550 1,000 1,100 1,500 1,650 2,750 5,000 9,000 10,000 40% 4,000 Year n-1 100 100 700 500 500 500 200 1,000 1,000 1,500 2,500 4,000 9,500 12,500 40% 4,200