Question
5 Use the following balance sheets and income statement for this question (All in $ Million) 2018 2019 LIABILITIES AND EQUITY 2018 2019 Current assets:
5 Use the following balance sheets and income statement for this question
(All in $ Million) | 2018 | 2019 |
| LIABILITIES AND EQUITY | 2018 | 2019 |
Current assets: |
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| Accounts payable | 540.0 | 398.1 |
Cash and cash equivalents | 1,148.1 | 1,188.6 |
| Accrued liabilities | 1,086.5 | 1,301.5 |
Short-term investments | 902.6 | 848.4 |
| Deferred revenue | 449.3 | 510.2 |
Accounts receivable, net | 386.5 | 485.9 |
| Long-term debt | 549.5 | 549.6 |
Inventories | 965.8 | 1,241.5 |
| Other long-term financing liabilities | 347.8 | 345.3 |
Prepaid expenses | 391.9 | 435.2 |
| Total liabilities | 2,973.1 | 3,104.7 |
Total current assets | 3,794.9 | 4,199.6 |
| Common stock par value | 0.7 | 0.7 |
Long-term investments securities | 479.3 | 575.9 |
| Additional paid-in capital | 40.5 | 40.5 |
Property, plant and equipment, net | 2,355.0 | 2,658.9 |
| Retained earnings | 4,297.4 | 5,046.2 |
Other operating assets | 731.2 | 784.8 |
| Other equity interests | 48.4 | 27.1 |
TOTAL ASSETS | 7,360.4 | 8,219.2 |
| Total shareholders' equity | 4,387.0 | 5,114.5 |
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| Non-controlling interests | 2.4 | 5.5 |
Tully Corp (in $ Million) | 2018 | 2019 |
| Total equity | 4,387.3 | 5,114.5 |
Total net revenue | 11,700.4 | 13,299.5 |
| TOTAL LIABILITIES AND EQUITY | 7,360.4 | 8,219.2 |
Cost of sales | 4,915.5 | 5,813.3 |
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Store and operating expense | 3,987.7 | 4,348.0 |
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Depreciation expense | 523.3 | 550.3 |
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General administrative expense | 749.3 | 801.2 |
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Other operating income | 203.9 | 210.7 |
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Operating income | 1,728.5 | 1,997.4 |
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Interest income | 115.9 | 94.4 |
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Interest expense | -33.3 | -32.7 |
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Earnings before income tax | 1,811.1 | 2,059.1 |
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Income taxes | 563.1 | 674.4 |
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Net earnings | 1,248.0 | 1,384.7 |
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Total dividend payment | 419.1 | 635.9 |
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Shares outstanding | 748.3 | 754.4 |
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Calculate the firm's Economic Value Added (EVA) during 2019 given the firm's cost of capital (WACC) is 10% and interpret the meaning of EVA for this firm investors.
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