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 $ 15,000 $ 14,000 Accounts receivable 35,000 25,000 Inventories 32,500 21,000 Total current assets $ 82,500 $ 60,000 Net plant and equipment 49,000 46,000 Total assets $131,500 $106,000 Liabilities and Equity Accounts payable $ 10,600 $ 8,000 Accruals 7,900 5,000 Notes payable 6,300 5,050 Total current liabilities $ 24,800 $ 18,050 Long-term bonds 20,000 20,000 Total liabilities $ 44,800 $ 38,050 Common stock (4,000 shares) 50,000 50,000 Retained earnings 36,700 17,950 Common equity $ 86,700 $ 67,950 Total liabilities and equity $131,500 $106,000 Income Statement for Year Ending December 31, 2016 Sales $220,000 Operating costs excluding depreciation and amortization 170,000 EBITDA $ 50,000 Depreciation & amortization 7,000 EBIT $ 43,000 Interest 3,850 EBT $ 39,150 Taxes (40%) 15,660 Net income $ 23,490 Dividends paid 4,740 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

Answer 1