The news (spread) around Italy fast.

We (meet) with our friends last week.

A resident must always wear a clothing protector.

I (read) your email, but I didn’t have time to reply.

The trip (take) thirty-three and a half hours.

I (pay) too much for this pair of shoes.

Mr. Graham (teach) me when I was in the third grade, thirty years ago!

Q 18. Last year South Bend Inc. had $500 million of sales, and the sales will be forecasted $600 million this year.  Last years’ spontaneous assets were $200 million.  What is the forecasted spontaneous assets this year.  Assume that the firm is operated at full capacity and the firm is using percent of sales method for forecasting.  

I (be) at the park when you called.

Q11.   MicroDrive Inc.  December 31 Balance Sheets       (in millions of dollars)                     2024 2023 Assets             Cash       $10 $15 Short-term investments       $0 $65 Accounts receivable       $375 $315 Inventories         $615 $415 Total current assets       $1,000 $810 Net plant and equipment (Net FA)       $1,000 $870 Total assets       $2,000 $1,680               Liabilities and equity           Accounts payable       $60 $30 Notes payable       $110 $60 Accruals         $140 $130 Total current liabilities       $310 $220 Long-term bonds       $754 $580 Total liabilities       $1,064 $800 Preferred stock (400,000 shares)     $40 $40 Common stock (50,000,000 shares)     $130 $130 Retained earnings       $766 $710 Total common equity       $896 $840 Total liabilities and equity       $2,000 $1,680   MicroDrive Income Statements for Years Ending December 31     (in millions of dollars)                     2024 2023 INCOME STATEMENT           Net sales         $3,000.0 $2,850.0 Operating costs except depreciation     $2,616.2 $2,497.0 EBITDA $383.8 $353.0 Depreciation and amortization     $100.0 $90.0 Earnings before interest and taxes (EBIT)     $283.8 $263.0 Less interest       $88.0 $60.0 Earnings before taxes (EBT)     $195.8 $203.0 Taxes (t=40%)         $78.3 $81.2 Net Income before preferred dividends     $117.5 $121.8 Preferred dividends       $4.0 $4.0 Net Income available to common stockholders   $113.5 $117.8               Common dividends       $57.5 $53.0 Addition to retained earnings     $56.0 $64.8       Calculate MicroDive’s free cash flow (FCF) for Year 2014.