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Consider the following information from the Company's Statement of Position: United American Grain, Co.

In addition, partial information on the Statement of Income and Expenses is presented.

Selected data from the Income and Expense Statement for the 20x2 in millions of dollars:

Depreciation expense $ 1,280

EBIT 2,160

Interest expense 294

Net profit after tax $ 1,120

Tax percent

40%

Using information from the Balance Sheet and selected data from the United Income Statement

American Grain, Co. determines the following values and answers the questions:

1. Calculate the NOPAT

2. Calculate the OCF

3. What does the result obtained for the OCF mean for the company?

4. How much is the FCF?

5. What does the result obtained in the FCF mean for the company?

6. Determine the CFNWC for the company.

Assets Cash Marketable securities Account Receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets December 31 (millions of dollars) _20x2 2 0x1 [ $1,200 $ 800 1,440 960 1,600 1,440 2,320 2,240 $ 6,560 $ 5,440 23,600 22,480 11,760 10,480 $11,840 $12,000 [ $18,400 [ $17,440 Liabilities and Stockholder's Equity Accounts payable $ 1,280 Notes Payable 2.240 Accruals - 160 Total current liabilities [ $ 3,680 Long Term debt 4,000 Total liabilities [ $ 7,680 Common Stock [ $ 8,000 Retained Earnings 2,720 Total Stockholder's Equity $10,720 Total Stockholder's Equity $18,400 and liabilities $ 1,200 1.760 240 $ 3,200 4,000 $ 7,200 $ 8,000 2,240 | $17,440

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