$3-14$STATEMENT OF STOCKHOLDERS' EQUITY Electronics World Inc. paid out $$22\mathrm{.}4$ million in total common dividends and reported $$144\mathrm{.}7$ million of retained earnings at year$-$end. The prior year's retained earnings were $$95\mathrm{.}5$ million. What was the net income? Assume that all dividends declared were actually paid.EVA For $2021,$ Gourmet Kitchen Products reported $$22$ million of sales and $$19$ million of operating costs $($including depreciation$).$ The company has $$15$ million of total invested capital. Its after$-$tax cost of capital is $10\%,$ and its federal$-$plus$-$state income tax rate was $25\%.$ What was the firm's economic value added $($EVA$),$ that is$,$ how much value did management add to stockholders' wealth during $2021?$STATEMENT OF CASH FLOWS Hampton Industries had $$39,000$ in cash at year$-$end $2020$ and $$11,000$ in cash at year$-$end $2021.$ The firm invested in property, plant, and equipment totaling $$210,000-$the majority having a useful life greater than $20$ years and falling under the alternative depreciation system. Cash flow from financing activities totaled $+$$$120,000\mathrm{.}1.$What was the cash flow from operating activities?$2.$It accruals increased by $$15,000,$ receivables and inventories increased by $$50,000,$ and depreciation and amortization totaled $$25,000,$ what was the firm's net income?STATEMENT OF CASH FLOWS You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters $($where all of the firm's records are kept$)$ has been destroyed by fire. So your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $$100,000$ in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $$5$ million in net income during the year but paid $$800,000$ in dividends to common shareholders. Throughout the year, the firm purchased $$5\mathrm{.}5$ million of property, plant, and equipment$-$the majority having a useful life of more than $20$ years and falling under the alternative depreciation system. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $$450,000.$ The purchase price for the property, plant, and equipment represents additions before depreciation. Finally, you have determined that the only financing done by the firm was to issue long$-$term debt of $$1$ million at a $6\%$ interest rate. What was the firm's end$-$of$-$year cash balance? Recreate the firm's cash flow statement to arrive at your answer.FREE CASH FLOW Arlington Corporation's financial statements $($dollars and shares are in millions$)$ are provided here.Balance Sheets as of December $3120212020$AssetsCash and equivalents$ $15,000$$ $14,000$Accounts receivable$35,00030,000$Inventories$33,32027,000$Total current assets$ $83,320$$ $71,000$Net plant and equipment$48,00046,000$Total assets$$131,320$$ $117,000$Liabilities and EquityAccounts payable$ $10,100$$$9,000$Accruals$8,0006,000$Notes payable$7,0005,050$Total current liabilities$ $25,100$$ $20,050$Long$-$term bonds$20,00020,000$Total liabilities$ $45,100$$ $40,050$Common stock $(4,000$ shares$)40,00040,000$Retained earnings$46,22036,950$Common equity$ $86,220$$ $76,950$Total liabilities and equity$$131,320$$ $117,000$Income Statement for Year Ending December $31,2021$SalesOperating costs excluding depreciation and amorizationDepreciation and amortizationEBITInterestEBTTaxes $(25\%)$Net incomeDividends paid$$210,000160,000$$ $50,0006,000$$ $44,0005,350$$ $38,6509,663528,988$$ $19,7181.$What was net operating working capital for $2020$ and $2021?$ Assume that all cash is excess cash; i$.$e$.,$ this cash is not needed for operating purposes$\mathrm{.}2.$What was Arlington's $2021$ free cash flow?$3.$Construct Arlington's $2021$ statement of stockholders' equity$\mathrm{.}4.$What was Arlington's $2021$ EVA? Assume that its after$-$tax cost of capital is $10\%\mathrm{.}5.$What was Arlington's MVA at year$-$end $2021?$ Assume that its stock price at December $31,2021$ was $$25.$