FREE CASH FLOW

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.

Balance Sheets as of December 31
	2016		2015
Assets
Cash and equivalents	$ 14,000		$ 11,000
Accounts receivable	35,000		30,000
Inventories	31,975		28,000
Total current assets	$ 80,975		$ 69,000
Net plant and equipment	50,000		45,000
Total assets	$130,975		$114,000
Liabilities and Equity
Accounts payable	$ 10,500		$ 9,500
Accruals	7,800		7,000
Notes payable	6,700		5,250
Total current liabilities	$ 25,000		$ 21,750
Long-term bonds	10,000		10,000
Total liabilities	$ 35,000		$ 31,750
Common stock (4,000 shares)	50,000		50,000
Retained earnings	45,975		32,250
Common equity	$ 95,975		$ 82,250
Total liabilities and equity	$130,975		$114,000

Income Statement for Year Ending December 31, 2016
Sales	$207,000
Operating costs excluding depreciation and amortization	160,000
EBITDA	$ 47,000
Depreciation & amortization	6,000
EBIT	$ 41,000
Interest	5,800
EBT	$ 35,200
Taxes (40%)	14,080
Net income	$ 21,120
Dividends paid	7,395

Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000.

1. What was net operating working capital for 2015 and 2016?

   2015	$ million
   2016	$ million

2. What was Arlington's 2016 free cash flow? $ million
3. Construct Arlington's 2016 statement of stockholders' equity.

   	Common Stock		Retained Earnings	Total Stockholders' Equity
   	Shares	Amount
   Balances, 12/31/15	million	$ million	$ million	$ million
   2016 Net Income			million
   Cash Dividends			million
   Addition to retained earnings				million
   Balances, 12/31/16	million	$ million	$ million	$ million

4. What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $ million
6. What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $ million