Sylvania Industries reported the following financial information for 2008:

Sylvania Industries reported the following financial information for 2008:

Revenues $10.0 million

Cost & Expenses (excl depreciation) $8.0 million

Depreciation $0.5 million

Taxes $0.6 million

Net Income $0.9 million

Fixed Assets (gross) $10 million

Working Capital $4 million

The firm expects revenues costs expenses (excluding depreciation) and working capital to grow at 10% per year for the next three years. It
also expects to invest $2 million per year in fixed assets which includes replacing worn out equipment and purchasing enough new equipment to support the
projected growth and maintain a competitive position. Assume depreciation is 5% of the gross fixed asset account the tax rate is 40% and that Sylvania has no
debt and therefore pays no interest.

a. Make a rough projection of cash flows for 2009 2010 and 2011 assuming no new debt or
equity is raised. Simply compute an income statement in each year add depreciation and subtract increases in working capital and fixed asset purchases.
Don%u2019t assume any new debt or equity.