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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
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 20,000 Inventories 28,550 16,000 Total current assets $ 73,550 $ 50,000 Net plant and equipment 51,000 47,000 Total assets $124,550 $97,000 Liabilities and Equity Accounts payable $ 10,500 $ 8,500 Accruals 7,100 6,000 Notes payable 6,200 5,100 Total current liabilities $ 23,800 $ 19,600 Long-term bonds 15,000 15,000 Total liabilities $ 38,800 $ 34,600 Common stock (4,000 shares) 40,000 40,000 Retained earnings 45,750 22,400 Common equity $ 85,750 $ 62,400 Total liabilities and equity $124,550 $97,000 Income Statement for Year Ending December 31, 2019 Sales $219,000 Operating costs excluding depreciation and amortization 170,000 EBITDA $ 49,000 Depreciation & amortization 4,000 EBIT $ 45,000 Interest 8,150 EBT $ 36,850 Taxes (25%) 9,212.50 Net income $ 27,637.50 Dividends paid 4,287.50 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 $ million 2019 $ million b. What was Arlington's 2019 free cash flow? $ 10400 million c. 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 4000 million 40000 million 22400 million 62400 million 2019 Net Income 27637.50 million Cash Dividends -4287.5 million Addition to retained 23350 million earnings Balances, 12/31/19 4000 million $ 40000 million $ 45750 million $ 85750 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. 14250 million
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