Task 2: Use the company's financial data to answer the questions

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Task 2: Use the company's financial data to answer the questions. Profit and Loss Account for Year ending Dec 31 in millions) 2015 2014 Sales Operating costs excluding depreciation EBITDA Depreciation Earnings before interest and taxes Less: Interest Earnings before taxes Taxes (40%) Net Income Common dividends 1,200 1,020 180 30 150 21.7 128.3 51.3 77 60.5 1,000 850 150 25 125 20.2 104.8 41.9 62.9 46.4 Balance Sheets as of Dec 21 An millions) 2015 2014 12 180 180 372 300 672 10 150 200 360 250 610 ASSETS Cash and marketable securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets LIABILITIES AND EQUITY Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock (50 million shares) Retained earnings Common equity Total liabilities and equity 108 67 72 247 150 397 50 225 275 90 51.5 60 201.5 150 351.5 50 208.5 258.5 610 672 Show detailed calculations in the spaces provided 1) Determine the net operating profit after taxes for 2015. 2) What are the amounts of net operating working capital for 2015 and 2014? 3) Determine the amount of total investor-supplied operating capital (invested capital) for 2015 and 2014. 4) What is the free cash flow for 2015?