Question

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents $ 13,000 $ 11,000 Accounts receivable 35,000 30,000 Inventories 32,880 28,000 Total current assets $ 80,880 $ 69,000 Net plant and equipment 51,000 48,000 Total assets $131,880 $117,000 Liabilities and Equity Accounts payable $ 10,600 $ 8,000 Accruals 7,200 6,000 Notes payable 6,200 5,400 Total current liabilities $ 24,000 $ 19,400 Long-term bonds 15,000 15,000 Total liabilities $ 39,000 $ 34,400 Common stock (4,000 shares) 50,000 50,000 Retained earnings 42,880 32,600 Common equity $ 92,880 $ 82,600 Total liabilities and equity $131,880 $117,000 Income Statement for Year Ending December 31, 2016 Sales $241,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 51,000 Depreciation & amortization 7,000 EBIT $ 44,000 Interest 6,650 EBT $ 37,350 Taxes (40%) 14,940 Net income $ 22,410 Dividends paid 12,130 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. What was net operating working capital for 2015 and 2016? 2015 $ million 2016 $ million What was Arlington's 2016 free cash flow? $ million Construct Arlington's 2016 statement of stockholders' equity. Common Stock Retained Earnings Total Stockholders' Equity Shares Amount Balances, 12/31/15 million $ million $ million $ million 2016 Net Income million Cash Dividends million Addition to retained earnings million Balances, 12/31/16 million $ million $ million $ million What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $ million What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $ million Check My Work Icon Key Previous Question 10 of 13 Next

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