Financial Statements, Cash Flow, and Taxes Laiho Industries: Balance Sheets as of December 31 (in thousands of dollars) 2021 2020 Assets Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets $101,614 106,367 37,639 $245,620 66,839 $312,459 $89,320 87,019 34,011 $210,350 43,641 $253,991 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $33,171 30,032 17,101 $80,304 75,515 $155,819 101,000 55,640 $156,640 $312,459 $24,740 22,081 14,741 $61,562 63,665 $125,227 91,000 37,764 $128,764 $253,991 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 $455,150 14% 17% 25% $8,014 46.25% Laiho Industries: Income Statement for Year Ending December 31, 2021 (in thousands of dollars) 2021 Formulas Sales $455,150 =C31 Operating costs excluding depreciation and #N/A amortization EBITDA #N/A Depreciation and amortization #N/A EBIT #N/A Interest #N/A EBT #N/A Taxes (25%) #N/A Net Income #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 Total Stockholders' Equity Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (in thousands of dollars) Retained Common Earnings Stock Balances, December 31, 2020 Common stock issue 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 #NA #NA #NA #NA #NA #NA #NA #NA #NA #NA #NA 2021 Laiho Industries: Statement of Cash Flows for 2021 (in thousands of dollars) Operating Activities Net income Depreciation and amortization Increase in accounts payable Increase in accruals Increase in accounts receivable Increase in inventories Net cash provided by operating activities Formulas #NA #NA #NA #NA #NA #NA #NA Investing Activities Additions to property, plant, and equipment Net cash used in investing activities #NA # #NA Financing Activities 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 Cash at the beginning of the year Cash at the end of the year #NA #NA #NA #NA #NA #NA #NA # #NA c. Calculating 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF) Excesss cash $0 NOWC2020 (in thousands of dollars) #N/A NOWC2021 (in thousands of dollars) #N/A FCF 2021 (in thousands of dollars) #N/A e. Calculating the firm's 2021 EVA After-tax cost of capital EVA2021 (in thousands of dollars) 11.5% #N/A f. Calculating the firm's MVA at year-end 2021 Stock price Shares outstanding MVA2021 (in thousands of dollars) $22 10,000 #N/A
