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) 2021 Cash $105,219 Accounts receivable 103,395 Inventories 38,736 Total current assets $247,350 Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2020 $ 91,230 84,507 35,439 67,956 $315,306 $211,176 42,265 $253,441 $ 30,158 29,568 16,734 $ 76,460 76,745 $153,205 $ 22,670 21,068 14,224 $ 57,962 65,695 $123,657 104,500 92,000 57,601 37,784 $162,101 $315,306 $129,784 $253,441 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. a. Sales for 2021 were $436,150,000, and EBITDA was 16% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $9,072,000, the corporate tax rate was 25%, and Laiho pays 46.25% 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 Common dividends Addition to retained earnings $ $ A A 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) Total Stockholders' Balances, December 31, 2020 Common stock issue 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 Common Stock Retained Earnings $ $ Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income +A $ 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 $ $ $ Equity 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 +A A +A $ $ c. Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. Cash at the beginning of the year Cash at the end of the year thousand thousand FCF 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 company's shareholders would pay NOWC2020: $ NOWC 2021 $ taxes on the dividends they would receive. e. Assume that the firm's after-tax cost of capital is 11.5%. 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? thousand Financial Statements, Cash Flow, and Taxes Laiho Industries: Balance Sheets as of December 31 (in thousands of dollars) Assets Cash 2021 2020 $105,219 $91,230 Accounts receivable Inventories Total current assets 103,395 84,507 38,736 35,439 $247,350 $211,176 Net fixed assets 67,956 42,265 Total assets $315,306 $253,441 Liabilities and equity Accounts payable $30,158 $22,670 Accruals 29,568 21,068 Notes payable 16,734 14,224 Total current liabilities $76,460 $57,962 Long-term debt 76,745 65,695 Total liabilities $153,205 $123,657 Common stock Retained earnings Total common equity Total liabilities and equity 104,500 92,000 57,601 37,784 $162,101 $129,784 $315,306 $253,441 a. Constructing the firm's 2021 income statement Laiho Industries: financial information for 2021 (in thousands of dollars) Sales EBITDA as a percentage of sales Depr. as a % of fixed assets Tax rate Interest expense Dividend payout ratio $436,150 16% 17% 25% $9,072 46.25% Laiho Industries: Income Statement for Year Ending December 31, 2021 (in thousands of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Interest EBIT EBT Taxes (25%) Net Income 2021 Formulas #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Common dividends Addition to retained earnings #N/A #N/A b. Constructing the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 in thousands of dollars) Balances, December 31, 2020 Common stock issue 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity Laiho Industries: Statement of Cash Flows for 2021 in thousands of dollars) Operating Activities Net income 2021 Formulas #N/A Depreciation and amortization #N/A ncrease in accounts payable #N/A Increase in accruals #N/A Increase in accounts receivable #N/A Increase in inventories #N/A Net cash provided by operating activities #N/A nvesting Activities Additions to property, plant, and equipment #N/A Net cash used in investing activities #N/A Financing Activities Increase in notes payable #N/A ncrease in long-term debt #N/A ncrease in common stock #N/A Payment of common dividends #N/A Net cash provided by financing activities #N/A Summary Net increase/decrease in cash Cash at the beginning of the year Cash at the end of the year #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 3 4 c. Calculating 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF) 5 Excesss cash 6 NOWC 2020 (in thousands of dollars) 7 NOWC 2021 (in thousands of dollars) $0 #N/A #N/A #N/A 8 FCF 2021 (in thousands of dollars) 9 00 e. Calculating the firm's 2021 EVA 01 After-tax cost of capital 02 EVA 2021 (in thousands of dollars) 03 04 f. Calculating the firm's MVA at year-end 2021 05 Stock price 06 Shares outstanding 07 MVA 2021 (in thousands of dollars) 158800123 09 11.5% #N/A $21 10,000 #N/A