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 $ 14,000 Accounts receivable 35,000 30,000 Inventories 34,420 27,000 Total current assets $ 84,420 $ 71,000 Net plant and equipment 52,000 49,000 Total assets $136,420 $120,000 Liabilities and Equity Accounts payable $ 10,300 $ 9,000 Accruals 7,300 6,000 Notes payable 7,000 5,100 Total current liabilities $ 24,600 $ 20,100 Long-term bonds 15,000 15,000 Total liabilities $ 39,600 $ 35,100 Common stock (4,000 shares) 50,000 50,000 Retained earnings 46,820 34,900 Common equity $ 96,820 $ 84,900 Total liabilities and equity $136,420 $120,000 Income Statement for Year Ending December 31, 2016 Sales $206,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $ 46,000 Depreciation & amortization 6,000 EBIT $ 40,000 Interest 900 EBT $ 39,100 Taxes (40%) 15,640 Net income $ 23,460 Dividends paid 11,540 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

Minnesota had the highest turnout rate of any state for the 2016 presidential election.† Political analysts wonder if turnout in rural Minnesota was higher than turnout in the urban areas of the state. A sample shows that 615 of 820 registered voters from rural Minnesota voted in the 2016 presidential election, while 378 out of 525 registered voters from urban Minnesota voted.

(a) Formulate the null and alternative hypotheses that can be used to test whether registered voters in rural Minnesota were more likely than registered voters in urban Minnesota to vote in the 2016 presidential election. (Let p₁ = the population proportion of voters in rural Minnesota who voted in the 2016 election and p₂ = the population proportion of voters in urban Minnesota who voted in the 2016 election.)

(b) What is the proportion of sampled registered voters in rural Minnesota that voted in the 2016 presidential election?

(d) At α = 0.05, test the political analysts' hypothesis. Calculate the test statistic. (Round your answer to two decimal places.)

(e) What is the p-value? (Round your answer to four decimal places.

What conclusion do you draw from your results?

a) Reject H₀. We cannot conclude that voters from rural Minnesota voted more frequently than voters from urban Minnesota in the 2016 Presidential election. b) Do not reject H₀. We cannot conclude that voters from rural Minnesota voted more frequently than voters from urban Minnesota in the 2016 Presidential election. c) Reject H₀. We can conclude that voters from rural Minnesota voted more frequently than voters from urban Minnesota in the 2016 Presidential election. d) Do not reject H₀. We can conclude that voters from rural Minnesota voted more frequently than voters from urban Minnesota in the 2016 Presidential election.

# 8

Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.

Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year:

a. Current ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Current ratio

2015 ___ times

2016 ___ times

b. Quick ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Quick ratio

2015 ___ times

2016 ___ times

c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Cash ratio

2015 ___ times

2016 ___ times

d. Debt−equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Debt−equity ratio Equity multiplier

2015 ___ times   2015 ___ times

2016 ___ times   2016 ___ times

e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Total debt ratio

2015 ___ times

2016 ___ times

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

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.

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?

What was Arlington's 2016 free cash flow?

$    million

Construct Arlington's 2016 statement of stockholders' equity.

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.

Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the following data have been assembled: The company sells a single product at a price of $70 per unit. The estimated sales volume for the next six months is as follows: September 14,300 units October 13,200 units November 15,400 units December 22,000 units January 9,900 units February 11,000 units All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of sale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $680,680 on September 30, 2016. Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month's budgeted sales. The finished goods inventory on September 30, 2016, is expected to be 3,960 units. To make one unit of finished product, 4 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 22,176 pounds on September 30, 2016. The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $100,267 on September 30, 2016.

Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2016.

b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2016.

c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2016.

d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2016.

e. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2016. (Do not round intermediate calculations.)

A set of hypothesis and a conclusion are given. Use the valid argument forms to deduce the conclusion from the hypothesis.

(i) p v q,

(ii) q ->r,

(iii)(p^s) ->t,

(iv) not r,

(v) (not q) -> (u ^ s)

(vi) t

Use the given transformation to evaluate the integral. (12x + 8y) dA R , where R is the parallelogram with vertices (−1, 3), (1, −3), (2, −2), and (0, 4) ; x = 1/ 4 (u + v), y = 1/ 4 (v − 3u)

Find the velocity, acceleration, and speed of a particle with the given position function.

r(t) =

9 cos(t), 8 sin(t)

Sketch the path of the particle and draw the velocity and acceleration vectors for

t =

.