Exercise 12-13

The following income statements and other information are available for the Schneider Company:

Calculate EVA for 2014. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over three years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725.)

2014 2013 2012 Sales $374,300,000 $246,300,000 $181,300,000 Less cost of goods sold 205,865,000 118,224,000 87,024,000 Gross margin 168,435,000 128,076,000 94,276,000 Less Selling and administrative costs 26, 201,000 24,630,000 18,130,000 Research and development 14,972,000 12,315,000 9,065,000 Income from operations 127,262,000 91,131,000 67,081,000 Less taxes on income 38,178,600 27,339,300 20,124,300 $89,083,400 $63,791,700 $46,956,700 Net income Total assets $713,900,000 $663,700,000 $437,900,000 Noninterest-bearing current liabilities 143,800,000 11,470,000 98,310,000 Cost of capital 12% 12% 12%