Cap Investment is analyzing a firm for valuation.

The financial
statements for the years 2019 and 2020 are given below:
Income Statement (in Balance Sheet (in $
$ Millions) Millions)

2019 2020 2019 2020

Sales 1,500 1,200 Cash 600 330

COGS 600 450 Accounts 800 650

receivable

Gross Profit 900 750 Inventory 450 400

SG&A 250 200 Current Assets 1,850 1,380

Depreciation 100 80 PPE (Gross) 2,990 2,800

Interest 50 40 Acc. depreciation 220 120

expense

Profit before 500 430 PPE (Net) 2,770 2,680

tax

Taxes (30%) 150 129 Total Assets 4,620 4,060

Profit after 350 301

tax

Accounts payable 950 860

Notes Payable 1500 1310

Current 2,450 2,170

liabilities

Long term debt 780 850

Common Stock 500 500

Retained earnings 890 540

Total liabilities 4,620 4,060

and equity

CALCULATE FCF FOR THE FIRM FOR THE YEAR 2020.