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 $ 15,000 $ 14,000 Accounts receivable 30,000 25,000 Inventories 27,190 24,000 Total current assets $ 72,190 $ 63,000 Net plant and equipment 53,000 48,000 Total assets $125,190 $111,000 Liabilities and Equity Accounts payable $ 10,600 $ 8,500 Accruals 7,600 7,000 Notes payable 7,000 5,250 Total current liabilities $ 25,200 $ 20,750 Long-term bonds 20,000 20,000 Total liabilities $ 45,200 $ 40,750 Common stock (4,000 shares) 50,000 50,000 Retained earnings 29,990 20,250 Common equity $ 79,990 $ 70,250 Total liabilities and equity $125,190 $111,000 Income Statement for Year Ending December 31, 2019 Sales $217,000 Operating costs excluding depreciation and amortization 170,000 EBITDA $ 47,000 EBITDA $ 47,000 Depreciation & amortization 5,000 EBIT $ 42,000 Interest 4,200 EBT $ 37,800 Taxes (259) 9,450.00 Net income $ 28,350.00 Dividends paid 18,610.00 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. 2. 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 0 million $ $ 0 2019 million b. What was Arlington's 2019 free cash flow? million c. Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019 Common Stock Retained Shares Earnings Amount Balances, 12/31/18 million $ million $ Total Stockholders' Equity 0 0 0 million $ 0 million 2019 Net Income 0 million Cash Dividends 0 million Addition to retained earnings 0 million 0 0 0 0 Balances, 12/31/19 million $ million $ million $ million d. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent. $ million e. 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. 0 $ 0 million 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 $ 15,000 $ 14,000 Accounts receivable 30,000 25,000 Inventories 27,190 24,000 Total current assets $ 72,190 $ 63,000 Net plant and equipment 53,000 48,000 Total assets $125,190 $111,000 Liabilities and Equity Accounts payable $ 10,600 $ 8,500 Accruals 7,600 7,000 Notes payable 7,000 5,250 Total current liabilities $ 25,200 $ 20,750 Long-term bonds 20,000 20,000 Total liabilities $ 45,200 $ 40,750 Common stock (4,000 shares) 50,000 50,000 Retained earnings 29,990 20,250 Common equity $ 79,990 $ 70,250 Total liabilities and equity $125,190 $111,000 Income Statement for Year Ending December 31, 2019 Sales $217,000 Operating costs excluding depreciation and amortization 170,000 EBITDA $ 47,000 EBITDA $ 47,000 Depreciation & amortization 5,000 EBIT $ 42,000 Interest 4,200 EBT $ 37,800 Taxes (259) 9,450.00 Net income $ 28,350.00 Dividends paid 18,610.00 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. 2. 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 0 million $ $ 0 2019 million b. What was Arlington's 2019 free cash flow? million c. Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019 Common Stock Retained Shares Earnings Amount Balances, 12/31/18 million $ million $ Total Stockholders' Equity 0 0 0 million $ 0 million 2019 Net Income 0 million Cash Dividends 0 million Addition to retained earnings 0 million 0 0 0 0 Balances, 12/31/19 million $ million $ million $ million d. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent. $ million e. 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. 0 $ 0 million
