Question

FREE CASH FLOW 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 $  13,000 Accounts receivable 30,000 25,000 Inventories 26,815 23,000   Total current assets $ 71,815 $ 61,000 Net plant and equipment 46,000 45,000 Total assets $117,815 $106,000 Liabilities and Equity Accounts payable $ 10,800 $  9,500 Accruals 7,800 6,000 Notes payable 6,200 5,200   Total current liabilities $ 24,800 $ 20,700 Long-term bonds 20,000 20,000   Total liabilities $ 44,800 $ 40,700 Common stock (4,000 shares) 50,000 50,000 Retained earnings 23,015 15,300   Common equity $ 73,015 $ 65,300 Total liabilities and equity $117,815 $106,000 Income Statement for Year Ending December 31, 2016 Sales $242,000 Operating costs excluding depreciation and amortization 200,000 EBITDA $ 42,000 Depreciation & amortization 3,000 EBIT $ 39,000 Interest 2,900 EBT $ 36,100 Taxes (40%) 14,440 Net income $ 21,660 Dividends paid 13,945 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