A

Laiho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown. Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) 2021 2020 Cash $110,188 $ 89,675 Accounts receivable 101,070 84,685 Inventories 36,886 33,866 Total current assets $248,144 $208,226 Net fixed assets 66,750 42,706 Total assets $314,894 $250,932 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $ 30,500 28,549 14,926 $ 73,975 76,221 $150,196 100,500 64,198 $164,698 $314,894 $ 22,930 21,706 12,716 $ 57,352 62,821 $120,173 88,000 42,759 $130,759 $250,932 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any. a. Sales for 2021 were $474,650,000, and EBITDA was 16% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $9,359,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement. Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars) 2021 Sales $ Operating costs excluding depreciation and amortization EBITDA $ Depreciation and amortization EBIT $ Interest EBT $ Taxes (25%) Net income $ Common dividends $ Addition to retained earnings $ cash flow Hint Viffer in b. Construct the statement equity for the year ending December 31, 2021, and the 2021 accumulated depreciation from one year to the next is the annual depreciation expense for the year. Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars) Total Stockholders' Common Stock Retained Earnings Equity Balances, December 31, 2020 $ $ $ Common stock issue 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income $ Net income $ $ Common dividends Addition to retained earnings $ b. Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year. Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars) Total Stockholders' Common Stock Retained Earnings Equity Balances, December 31, 2020 $ $ Common stock issue $ 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 $ Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income $ Depreciation and amortization Increase in accounts payable Increase in accruals Increase in accounts receivable Increase in inventories $ $ $ Net cash provided by operating activities Investing Activities Additions to property, plant, and equipment Net cash used in investing activities Financing Activities Increase in notes payable Increase in long-term debt Increase in common stock Payment of common dividends $ Natrach nravidad hur financing activitiar $ $ $ Investing Activities Additions to property, plant, and equipment Net cash used in investing activities Financing Activities Increase in notes payable Increase in long-term debt Increase in common stock Payment of common dividends Net cash provided by financing activities Summary Net increase/decrease in cash Cash at the beginning of the year Cash at the end of the year $ $ $ C. Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. NOWC2020: $ thousand NOWC2021: $ thousand FCF2021: $ thousand 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 shareholders? corporate taxes and the company's shareholders would pay If Laiho increased its dividend payout ratio, the firm would pay taxes on the dividends they would receive. e. Assume that the firm's after-tax cost of capital is 10.5%. What is the firm's 2021 EVA? $ thousand f. Assume that the firm's stock price is $21 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021? $ thousand a. Constructing the firm's 2021 income statement Laiho Industries: financial information for 2021 (in thousands of dollars) $474,650 16% 17% Sales EBITDA as a percentage of sales Depr. as a % of fixed assets Tax rate Interest expense Dividend payout ratio 25% $9,359 48.25% Laiho Industries: Income Statement for Year Ending December 31, 2021 (in thousands of dollars) 2021 Formulas Sales #N/A Operating costs excluding depreciation and #N/A amortization EBITDA #N/A Depreciation and amortization #N/A #N/A Interest #N/A EBT #N/A Taxes (25%) #N/A Net Income #N/A EBIT Common dividends Addition to retained eamings #N/A #N/A b. Constructing the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (in thousands of dollars) Retained Earnings Common Stock Total Stockholders' Equity #NA #N/A #N/A #N/A #N/A Balances, December 31, 2020 Common stock issue 2021 Net income Cash dividends Addition to retained eamings Balances, December 31, 2021 #N/A #N/A #N/A #N/A #N/A #N/A 2021 Laiho Industries: Statement of Cash Flows for 2021 (in thousands of dollars) Operating Activities Net income Depreciation and amortization Increase in accounts payable Increase in accruals Increase in accounts receivable Increase in inventories Net cash provided by operating activities Formulas #N/A #N/A #N/A #N/A #N/A #N/A #N/A Investing Activities Additions to property, plant, and equipment Net cash used in investing activities #N/A #N/A Financing Activities Increase in notes payable Increase in long-term debt Increase in common stock Payment of common dividends Net cash provided by financing activities #N/A #N/A #N/A #N/A #N/A Summary Net increase/decrease in cash Cash at the beginning of the year Cash at the end of the year #N/A #N/A #N/A c. Calculating 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF) Excesss cash $0 NOWC2020 (in thousands of dollars) #N/A NOWC2021 (in thousands of dollars) #N/A FCF 2021 (in thousands of dollars) #N/A 10.5% #N/A e. Calculating the firm's 2021 EVA 1 After-tax cost of capital 2 EVA2021 (in thousands of dollars) 3 4 f. Calculating the firm's MVA at year-end 2021 5 Stock price 6 Shares outstanding MVA2021 (in thousands of dollars) $21 10,000 #N/A