2019

Cash $ 102,950

Accounts receivable 103,465

Inventories 38, 544

Total current assets 244, 959

Property, plant and equipment 67,265

Total assets 312,224

Accounts payable 30,861

Accumulations 30,577

Obligations payable 16,817

Total current liabilities 78,255

Long-term debt 76,364

Total liabilities 154, 619

Common shares 100,000

Retained earnings 57,605

Total stockholders' equity 157,605

Total of liabilities plus equity $ 312,224

2018

Cash $ 89,825

Accounts receivable 85,627

Inventories 35,082

Total current assets 210, 534

Property, plant and equipment 42,536

Total assets 253,070

Accounts payable 23,209

Accumulations 22,756

Obligations payable 14,317

Total current liabilities 60,282

Long-term debts 64,014

Total liabilities 124,296

Common shares 90,100

Retained earnings 38,874

Total stockholders' equity 128,974

Total of liabilities plus equity $ 253,270

1. In 2019, Kairos Industries achieved sales of $ 330 million and an EBITDA of 17% of sales. Depreciation as amortization of fixed assets was 11% and interest paid $ 2 million. On the other hand, the tax rate was 35% and 38% of net income is allocated to dividends. Prepare an income statement taking into consideration the data presented. (10 points)

2. Prepare the capital statement for the period ended December 31, 2019. (8 points)

3. Taking into consideration that Kairos Industries does not have any surplus cash available, it determines the available cash flow (Free Cash Flow) and the operating working capital. (6 points)

4. Explain the effect it would have on the taxes paid by shareholders and the company if Kairos Industries increased its dividend rate. (8 points)

5. Calculate the economic value added (EVA) and the market value added (MVA) in 2019, considering that the cost of capital after tax is 12% and the price of the shares of Kairos Industries is $ 20 with 9 million of outstanding shares. (8 points)