chp 3 fin statements, cash flows, and taxes

DONT ANSWER PART D

Excel Activity: Financial Statements, Cash Flow, and Taxes Lalho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown. Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) 2021 2020 Cash $107,309 $ 89,640 Accounts receivable 102,149 84,521 Inventories 40,096 36,951 Total current assets $249,554 $211,112 Net fixed assets 70,140 44,003 Total assets $319,694 $255,115 Accounts payable $ 31,595 $ 23,060 Accruals 31,828 23,281 Notes payable 15,962 13,222 Total current liabilities $ 79,355 $ 59,563 Long-term debt 74,813 63,413 Total liabilities $154,168 $122,976 Common stock 99,500 87,000 Retained earnings 66,026 45,139 Total common equity $165,526 $132,139 Total liabilities and equity $319,694 $255,115 The data has been collected in the Microsoft Excel file below. Open 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. $ d. Sales for 2021 were $469,650,000, and EBITDA was 16% of sales. Furthermore, depreciation and amortization were 19% of net fixed assets, interest was $8,001,000, the corporate tax rate was 25%, and Laiho pays 49.25% 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 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) $ $ Net Income Numeric field $ Common dividends Addition to retained earnings $ Common Stock Retained Earnings TOLDI DIOCKnigers Equity $ $ Balances, December 31, 2020 Common stock Issue 2021 Net Income Cash dividends Addition to retained earnings Balances, December 31, 2021 $ $ 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 $ $ $ 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. NOWC2020: $ thousand NOWC2021: $ thousand FCF 2021:5 thousand d. If Lalho 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? 1f Lalho increased its dividend payout ratio, the firm would pay the same amount of corporate taxes and the company's shareholders would pay more taxes on the dividends they would receive e. Assume that the firm's after-tax cost of capital is 10.5%. What is the firm's 2021 EVA? thousand Assume that the firm's stock price is $23 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 20217 thousand