b$.$ Construct the statement of stockholders' equity for the year ending December $31,2021,$ and the $2021$ statement of cash flows.

Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year.

Laiho Industries: Statement of Stockholders' Equity, December $31,2021($thousands of dollars$)$

Laiho Industries: Statement of Cash Flows for $2021($thousands of dollars$)$

$2021$

Operating Activities

Net income

Depreciation and amortization

Increase in accounts payable

Increase in accruals

Increase in accounts receivable

Increase in inventories

Net cash provided by operating activities

Investing Activities

Additions to property, plant, and equipment

Net cash used in investing activities

Financing Activities

Increase in notes payable

$

Increase in long$-$term debt

Increase in common stock

Payment of common dividends

Net cash provided by financing activities

$

Summary

Net increase$/$decrease in cash

$

Cash at the beginning of the year

Cash at the end of the year

c$.$ Calculate $2020$ and $2021$ net operating working capital $($NOWC$)$ and $2021$ free cash flow $($FCF$).$ Assume the firm has no excess

cash.

NOWC ${?}_{2020}$:$ thousand

NOWC ${?}_{2021}$:$ thousand

$FC{F}_{2021}$:$$,$ thousand

d$.$ If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on

taxes paid by the company's shareholders?

If Laiho increased its dividend payout ratio, the firm would pay $|$

corporate taxes and the compan's

shareholders would pay

taxes on the dividends they would receive.

e$.$ Assume that the firm's after$-$tax cost of capital is $9\mathrm{.}5\%.$ What is the firm's $2021$ EVA?

f$.$ Assume that the firm's stock price is $$21$ per share and that at year$-$end $2021$ the firm has $10$ million shares outstanding. What is

the firm's MVA at year$-$end $2021?$Excel Activity: Financial Statements, Cash Flow, and Taxes

Laiho Industries's $2020$ and $2021$ balance sheets $($in thousands of dollars$)$ are shown.

Laiho Industries: Balance Sheets as of December $31($thousands of dollars$)$

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the

questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $$1$ thousand

should be entered as $1,$ not $1,000.$ Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any.

Download spreadsheet Financial Statements, Cash Flow, and Taxes$-9$e$2$ad$4.$xIsx

a$.$ Sales for $2021$ were $$446,650,000,$ and EBITDA was $15\%$ of sales. Furthermore, depreciation and amortization were $18\%$ of net

fixed assets, interest was $$8,272,000,$ the corporate tax rate was $25\%,$ and Laiho pays $47\mathrm{.}25\%$ of its net income as dividends.

Given this information, construct the firm's $2021$ income statement.

Laiho Industries: Income Statement for Year Ending December $31,2021$

$($thousands of dollars$)$

$2021$