Laiho Industries' 2011 and 2012 balance sheets (in thousands of dollars) are shown.
_______________________________________________________2012_____________2011
Cash........................................................................$102,850...............$ 89,725
Accounts receivable........................................................103,365..................85,527
Inventories........................................................................38,444..................34,982
Total current assets..........................................................$244,659................$210,234
Net fixed assets.............................................................67,165..................42,436
Total assets...............................................................$311,824...............$252,670
Accounts payable.........................................................$ 30,761................$ 23,109
Accruals......................................................................30,477...................22,656
Notes payable...............................................................16,717..................14,217
Total current liabilities..................................................$ 77,955................$ 59,982
Long-term debt............................................................76,264..................63,914
Total liabilities...........................................................$154,219...............$123,896
Common stock............................................................100,000..................90,000
Retained earnings..........................................................57,605..................38,774
Total common equity...................................................$157,605...............$128,774
Total liabilities and equity.............................................$311,824...............$252,670
a. Sales for 2012 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm's 2012 income statement.
b. Construct the statement of stockholders' equity for the year ending December 31, 2012, and the 2012 statement of cash flows.
c. Calculate 2011 and 2012 net operating working capital (NOWC) and 2012 free cash flow (FCF).
d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?