3-19 FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries's 2017 and 2018 bal- ance sheets (in thousands of dollars) are shown. 2018 2017 Cash Accounts receivable Inventories $102,850 103,365 38,444 $244,659 67,165 $311 824 $ 89,725 85,527 34,982 $210,234 42,436 $252 670 Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $ 30,761 30,477 16717 $ 77,955 76264 $154219 100,000 57,605 $157,605 $311 824 $ 23,109 22656 14,217 $ 59,982 63,914 $123,896 90,000 38,774 $128,774 $252,670 a. Sales for 2018 were S455,150,000, and EBITDA was 15% of sales. Furthermore, depre- ciation 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 2018 income statement. b. Construct the statement of stockholders' equity for the year ending December 31, 2018, and the 2018 statement of cash flows. c Calculate 2017 and 2018 net operating working capital (NOWC) and 2018 free cash flow (FCF). Assume the firm has no excess cash. 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 share- holders? e. Assume that the firm's after-tax cost of capital is 10.5%. What is the firm's 2018 EVA? f. Assume that the firm's stock price is $22 per share and that at year-end 2018 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2018