Question

In: Finance

What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.

Balance Sheets as of December 31
2019 2018
Assets
Cash and equivalents $  13,000 $  11,000
Accounts receivable 30,000 25,000
Inventories 28,095 24,000
  Total current assets $ 71,095 $ 60,000
Net plant and equipment 54,000 49,000
Total assets $125,095 $109,000
Liabilities and Equity
Accounts payable $ 10,800 $  8,500
Accruals 7,400 5,000
Notes payable 6,500 5,050
  Total current liabilities $ 24,700 $ 18,550
Long-term bonds 15,000 15,000
  Total liabilities $ 39,700 $ 33,550
Common stock (4,000 shares) 60,000 60,000
Retained earnings 25,395 15,450
  Common equity $ 85,395 $ 75,450
Total liabilities and equity $125,095 $109,000
Income Statement for Year Ending December 31, 2019
Sales $229,000
Operating costs excluding depreciation and amortization 180,000
EBITDA $ 49,000
Depreciation & amortization 8,000
EBIT $ 41,000
Interest 2,700
EBT $ 38,300
Taxes (25%) 9,575.00
Net income $ 28,725.00
Dividends paid 18,780.00
  1. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.

    2018 $ ____million
    2019 $ ___million
  2. What was Arlington's 2019 free cash flow?

    $ _____million

  3. Construct Arlington's 2019 statement of stockholders' equity.

    Statement of Stockholders' Equity, 2019
    Common Stock Retained
    Earnings
    Total Stockholders'
    Equity
    Shares Amount
    Balances, 12/31/18 ______ million $ _______ million $ ______ million $ _____ million
    2019 Net Income _____ million
    Cash Dividends _____ million
    Addition to retained earnings _____ million
    Balances, 12/31/19 _____million $_____ million $_____ million $_____million
  4. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent.

    $ _______million

  5. What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25. Round your answer to the nearest cent.

    $______ million

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