Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2018 2017 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 12,000 $ 11,000 35,000 30,000 33,555 28,000 $ 80,555 $ 69,000 49,000 46,000 $129,555 $115,000 Liabilities and Equity Accounts payable $ 10,900 $ 9,000 Accruals 7,500 6,000 Notes payable 6,600 5,350 Total current liabilities $ 25,000 $20,350 Long-term bonds 20,000 20,000 Total liabilities $ 45,000 $ 40,350 Common stock (4,000 shares) ) 40,000 40,000 Retained earnings 44,555 34,650 Common equity $ 84,555 $ 74,650 Total liabilities and equity $129,555 $115,000 Income Statement for Year Ending December 31, 2018 Sales $197,000 Operating costs excluding depreciation and amortization 150,000 EBITDA $ 47,000 Depreciation & amortization 5,000 EBIT $ 42,000 Interest 6,850 EBT $ 35,150 Taxes (40%) 14,060 Net income $ 21,090 Dividends paid 11,185 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2017$ million 2018$ million b. What was Arlington's 2018 free cash flow? $ million Total Stockholders' ' Equity $ million C. Construct Arlington's 2018 statement of stockholders' equity. Statement of Stockholders' Equity, 2018 Common Stock Retained Shares Amount Earnings Balances, 12/31/17 million $ million $ million 2018 Net Income million Cash Dividends million Addition to retained earnings Balances, 12/31/18 million $ million $ million d. What was Arlington's 2018 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $ million million million $ e. What was Arlington's MVA at year-end 2018? Assume that its stock price at December 31, 2018 was $25. Round your answer to two decimal places. $ million
