The incredible growth of LG Korea (KOR) has put fear into the hearts of competing appliance makers. The following financial information is taken from LG's financial statements.

Instructions
a. Calculate free cash flow for LG for the current and prior years, and discuss its ability to finance expansion from internally generated cash. Assume that LG's major capital expenditures related to building manufacturing plants and that to date it has avoided purchasing large warehouses. Instead, it has used those of others. It is possible, however, that in order to continue its growth in international sales, the company may have to build its own warehouses. If this happens, how might your impression of its ability to finance expansion change?
b. Discuss any potential implications of the change in LG's cash provided by operations from the prior year to the current year.

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(Korean won in billions) Current Year Prior Year Current assets w30,517 w24,297 Total assets 64,782 54,080 Current liabilities 28,110 21,136 Total liabilities 39,048 32,152 Cash provided by operations 10,217 8,807 Capital expenditures 8,190 5,071 Dividends paid 659 423 Net income (loss) 3,632 2,967 Sales 90,222 76,228