Question
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$14,000
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$14,000 $11,000 Accounts receivable 30,000 25,000 Inventories 29,595 23,000 Total current assets$73,595 $59,000 Net plant and equipment 46,000 45,000 Total assets$119,595 $104,000 Liabilities and Equity Accounts payable$10,300 $8,000 Accruals 8,000 7,000 Notes payable 6,500 5,350 Total current liabilities$24,800 $20,350 Long-term bonds 15,000 15,000 Total liabilities$39,800 $35,350 Common stock (4,000 shares) 60,000 60,000 Retained earnings 19,795 8,650 Common equity$79,795 $68,650 Total liabilities and equity$119,595 $104,000 Income Statement for Year Ending December 31, 2019 Sales$238,000 Operating costs excluding depreciation and amortization 190,000 EBITDA$ 48,000 Depreciation & amortization 6,000 EBIT$ 42,000 Interest 3,500 EBT$ 38,500 Taxes (25%) 9,625.00 Net income$ 28,875.00 Dividends paid 17,730.00 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary.
- What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.
- 2018$ million2019$ million
- What was Arlington's 2019 free cash flow?
- $ million
- 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$ million$ million2019 Net Income millionCash Dividends millionAddition to retained earnings millionBalances, 12/31/19 million$ million$ million$ million
- What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent.
- $ million
- 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
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