Chapter Two -- Spreadsheet Assignment
Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year.
SeaCliff Lodge: Income Statements for Year Ending December 31
(Thousands of Dollars)				2016	2015
Sales				$1,275,600	$1,150,960
Expenses excluding depreciation and amortization				966,368	872,620
EBITDA				$309,232	$278,340
Depreciation and amortization				22,500	17,500
EBIT				$286,732	$260,840
Interest Expense				10,470	8,600
EBT				$276,262	$252,240
Taxes (40%)				110,505	100,896
Net income				$165,757	$151,344
Common dividends				$24,864	$22,702
Addition to retained earnings				$140,894	$128,642
SeaCliff Lodge: December 31 Balance Sheets
(Thousands of Dollars)
Assets				2016	2015
Cash and cash equivalents				$53,400	$44,685
Short-term investments				24,000	13,550
Accounts Receivable				315,500	298,400
Inventories				450,980	398,675
Total current assets				$843,880	$755,310
Net fixed assets				468,400	422,200
Total assets				$1,312,280	$1,177,510
Liabilities and equity
Accounts payable				$144,500	$110,000
Accruals				46,850	42,750
Notes payable				76,036	150,810
Total current liabilities				$267,386	$303,560
Long-term debt				456,000	425,950
Total liabilities				$723,386	$729,510
Common Stock				358,000	358,000
Retained Earnings				230,894	90,000
Total common equity				$588,894	$448,000
Total liabilities and equity				$1,312,280	$1,177,510
Key Input Data
Tax rate				40%
Net operating working capital -- NOWC
2016	NOWC =	Operating current assets	-	Operating current liabilities
2016	NOWC =		-
2016	NOWC =
2015	NOWC =	Operating current assets	-	Operating current liabilities
2015	NOWC =		-
2015	NOWC =
Total net operating capital -- OC
2016	OC =	NOWC	+	Net Fixed assets
2016	OC =		+
2016	OC =
2015	OC =	NOWC	+	Net Fixed assets
2015	OC =		+
2015	OC =
Investment in total net operating capital
		2016		2015
2016	Inv. In OC =	OC	-	OC
2016	Inv. In OC =		-
2016	Inv. In OC =
Net operating profit after taxes
2016	NOPAT =	EBIT	x	( 1 - Tax rate )
2016	NOPAT =		x
2016	NOPAT =
Operating Cash Flow (OCF)						NOTE:
2016	OCF=	NOPAT	+	Depreciation		The OCF equation is on the
2016	OCF=		+			purple concept sheet.
2016	OCF=
Free cash flow
2016	FCF =	NOPAT	-	Net investment in operating capital
2016	FCF =		-
2016	FCF =
Return on invested capital
2016	ROIC =	NOPAT	/	Total net operating capital -- 2016 OC
2016	ROIC =		/
2016	ROIC =
Assume that there were 18.5 million shares outstanding at the end of the year, the year-end closing stock price was $52.50 per share, and the after-tax cost of capital was 9%. Calculate EVA and MVA for the most recent year.
Additional Input Data
Stock price per share		$52.50
# of shares (in thousands)		18,500
After-tax cost of capital		9.0%
Market Value Added
MVA =	[ Stock Price	x	# of shares ]	-	Total common equity
		x
				-
MVA =
Economic Value Added
EVA =	NOPAT	-	[ After-tax cost of capital -- WACC	x	Operating Capital -- 2016 OC ]
		-		x
		-
EVA =