4. eBook 5. Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35,000 30,000 Inventories 34,465 28,000 Total current assets $ 84,465 $ 72,000 Net plant and equipment 51,000 46,000 Total assets $135,465 $118,000 Liabilities and Equity Accounts payable $ 10,600 $ 9,000 Accruals 7,600 7,000 Notes payable 6,900 5,400 Total current liabilities $ 25,100 $ 21,400 Long-term bonds 15,000 15,000 Total liabilities $ 40,100 $ 36,400 Common stock (4,000 shares) 40,000 40,000 Retained earnings 55,365 41,600 Common equity $ 95,365 $ 81,600 Total liabilities and equity $135,465 $118,000 Income Statement for Year Ending December 31, 2019 Income Statement for Year Ending December 31, 2019 Sales $240,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 50,000 Depreciation & amortization 5,000 EBIT $ 45,000 Interest 7,750 EBT $ 37,250 Taxes (25%) 9,312.50 Net income $ 27,937.50 Dividends paid 14,172.50 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. a. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2018 $ 56000 million 2019 $ 51265 Mmillion b. What was Arlington's 2019 free cash flow? $ million c. Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019 Common Stock Retained Earnings Total Stockholders' Equity Shares Amount Balances, 12/31/18 x million $ million $ x million $ million 2019 Net Income x million Chpt 3 Homework a. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2018 $ 56000 x million 2019 $ 51265 million b. What was Arlington's 2019 free cash flow? $ X million c. Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019 Common Stock Retained Earnings Total Stockholders' Equity Shares Amount Balances, 12/31/18 million $ million $ x million $ $ million 2019 Net Income million Cash Dividends x million million Addition to retained earnings Balances, 12/31/19 million $ million $ x million $ million d. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent. million e. What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25. Round your answer to the nearest cent. $ million
