Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 35,000 30,000 Inventories 34,645 28,000 Total current assets $ 84,645 $ 72,000 46,000 Net plant and equipment 48,000 Total assets $132,645 $118,000 Liabilities and Equity Accounts payable $ 10,700 $ 9,500 Accruals 5,000 Notes payable 7,800 6,300 5,100 Total current liabilities $ 19,600 Long-term bonds $ 24,800 10,000 10,000 Total liabilities $ 34,800 $ 29,600 Common stock (4,000 shares) 60,000 60,000 Retained earnings 37,845 28,400 Common equity $ 97,845 $ 88,400 Total liabilities and equity $132,645 $118,000 Income Statement for Year Ending December 31, 2019 Sales $196,000 Operating costs excluding depreciation and amortization 150,000 EBITDA $ 46,000 Depreciation & amortization. 4,000 EBIT $ 42,000 Interest 5,050 EBT $36,950 Taxes (25%) 9,237.50 Net income 27,712.50 Dividends paid 18,267.50 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. a. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; I.e., this cash is not needed for operating purposes. 2018$ 2019$ million 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 Shares: Amount Balances, 12/31/18 million $ million $ million. $ 2019 Net Income million Cash Dividends. million million Addition to retained earnings 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. 5 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. $ million Retained Earnings Total Stockholders' Equity million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital Budgeting

Authors: Pamela P. Peterson

1st Edition

0471218332, 9780471218333

More Books

Students also viewed these Finance questions