Exercise 12-13

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

2014	2013	2012
Sales	$371,300,000	$258,200,000	$184,600,000
Less cost of goods sold	204,215,000	123,936,000	88,608,000
Gross margin	167,085,000	134,264,000	95,992,000
Less:
Selling and administrative costs	25,991,000	25,820,000	18,460,000
Research and development	14,852,000	12,910,000	9,230,000
Income from operations	126,242,000	95,534,000	68,302,000
Less taxes on income	37,872,600	28,660,200	20,490,600
Net income	$88,369,400	$66,873,800	$47,811,400
Total assets	$719,600,000	$663,500,000	$435,300,000
Noninterest-bearing current liabilities	141,100,000	11,400,000	98,790,000
Cost of capital	12%	12%	12%

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.)

EVA for 2014

$