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Question 53 2016 2015 Calculate the Free Cash Flow for 2016 170 50 190 140 20 130 200 390 Glocal Inc.: December 31: Balance Sheets (Millions of Dollars) Assets 2016 2015 Labilities and Equity Cash and equivalents 290 300 Accounts Payable Short-term investments 60 50 Notes Payable Accounts Receivable 300 400 Accruals Inventories 350 300 Current Liabilities Total Current Assets 1,000 1,050 Long-Term Bonds Total Liabilities Preferred stock Net Plant and Equipment 1,000 550 Common Stock Retained Earnings Total Common Equity Total Assets 2,000 1,600 Total Liabilities & Equity 490 600 400 1.200 1,090 790 30 40 250 200 170 680 600 880 770 X-20 Question 54 2,000 1,600 The Uses of Free Cash Flow for 2016: Income Statement 2016 2015 200 Net Sales 1,600.0 1,200.0 600.0 After-Tax Interest 500.0 50.0 80.0 150.0 100.0 30 900.0 420.0 50.0 60.0 Cost of goods sold except depreciation Depreciation Other operating expenses Earnings before interest and taxes (EBIT) Less interest e mere Earnings before taxes (EBT) Taxes (40%) Net Income before preferred dividends Preferred dividends Net Income available to common stockholders 850.0 360.0 50 340.0 144.0 510.0 216.0 10.0 10.0 20 500.0 206.0 Question 55 2016 2015 The Uses of Free Cash Flow for 2016: $100.00 $90.00 12.00% 10.00% Additional Information Stock Price WACC Tax Rate Preffered Shares Outstanding (millions) Common Shares Outstanding (millions) Notes Payable 40.00% 40.00% 3 4 20 17 190 50 -50 -190 Question 56 Question 57 Question 58 The Uses of Free Cash Flow for 2016: The Uses of Free Cash Flow for 2016: The Uses of Free Cash Flow for 2016: Long-Term Bonds Common Dividends Common Stock -200 10 110 200 420 -110 X - 10 600 -30 -420 -600 30 Question 59 The Uses of Free Cash Flow for 2016: Short Term Investments 60 -60 X - 10 10

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