1. The 2015 income statement for Egyptian Noise Blasters shows that depreciation expense is $94 million, NOPAT is $281 million. At the end of the year, the balance of gross fixed assets was $720 million. The change in net operating working capital during the year was $84 million. Egyptian’s free cash flow for the year was $250 million.

Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.)

2. You have been given the following information for Moore’s HoneyBee Corp.:

a. Net sales = $44,000,000. b. Gross profit = $19,400,000. c. Other operating expenses = $3,400,000. d. Addition to retained earnings = $5,400,000. e. Dividends paid to preferred and common stockholders = $2,100,000. f. Depreciation expense = $2,000,000.

The firm’s tax rate is 36 percent.

Calculate the interest expense for Moore’s HoneyBee Corp. (Answer in dollar amount)