Question
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.]
- What is Operating Cash Flow for 2019?
- What is Free Cash Flow for 2019?
- 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?
- Given the firms WACC is 10%, what is EVA during 2019?
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