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Financial information on AAA Ltd. is shown below. AAA Ltd. Income Statement For the Year Ended December 31st, 2019 2018 Sales 4,215,750 3,850,000 Cost Of

Financial information on AAA Ltd. is shown below.

AAA Ltd. Income Statement

For the Year Ended December 31st,

2019

2018

Sales

4,215,750

3,850,000

Cost Of Goods Sold

2,178,700

2,016,320

Other Expenses

1,005,200

986,500

Depreciation

9,800

8,550

Earnings Before Interest and Taxes

1,022,050

838,630

Interest Expense

56,735

46,870

Earnings Before Taxes

965,315

791,760

Taxes (30%)

289,595

237,528

Net Income

$ 675,721

$ 554,232

AAA Ltd. Balance Sheet

As at December 31st,

ASSETS

2019

2018

Cash & Equivalent

50,750

23,180

Short-term investments

202,834

186,014

Inventories

1,458,841

1,355,047

Accounts Receivable

218,500

131,221

Total Current Assets

1,930,925

1,695,462

Prop, Plant & Equip - Net

2,154,301

1,940,594

Total Assets

$ 4,085,226

$ 3,636,056

LIABILITIES & EQUITY

Accounts Payable

267,566

258,151

Notes Payable

82,823

62,310

Accruals

58,559

31,210

Short-term Debt

314,469

317,416

Total Current Liabilities

723,417

669,087

Long-Term Debt

833,547

844,139

Total Liabilities

1,556,964

1,513,226

Common Share Capital

650,000

650,000

Retained Earnings

1,878,263

1,472,830

Total Equity

2,528,263

2,122,830

Total Liabilities and Equity

$ 4,085,226

$ 3,636,056

Answer the following questions (a-e). [Please note: short-term investments are non-operating current assets; notes payable and short-term debt are non-operating current liabilities.]

  1. What is Operating Cash Flow for 2019?

  1. What is Free Cash Flow for 2019?

  1. The stock is traded at $30 per share at the end of 2019 and there are 100,000 shares outstanding. What is MVA during 2019?

  1. Given the firms WACC is 10%, what is EVA during 2019?

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