Arlington Corporations financial statements (dollars and shares are in millions) are provided here.

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.

b. What was Arlingtons 2018 free cash flow?

c. Construct Arlingtons 2018 statement of stockholders equity.

d. What was Arlingtons 2018 EVA? Assume that its after-tax cost of capital is 10%.

e. What was Arlingtons MVA at year-end 2018? Assume that its stock price at December 31, 2018 was $25.

PLEASE SHOW FORMULAS AND ALL WORK.

Transcribed image text: Balance Sheets as of December 31 2018 2017 Assets Cash and equivalents Accounts receivable Inventories $ 15,000 35,000 33,320 $ 83,320 48,000 $ 14,000 30,000 27,000 $ 71,000 46,000 $ 117,000 Total current assets Net plant and equipment Total assets $131,320 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 Long-term bonds $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 Total liabilities Common stock (4,000 shares) 46,220 Retained earnings Common equity Total liabilities and equity $ 86,220 $131,320 Income Statement for Year Ending December 31, 2018 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT $210,000 160,000 $ 50,000 6,000 $ 44,000 5,350 $ 38,650 15,460 $ 23,190 $ 13,920 Interest EBT Taxes (40%) Net income Dividends paid