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

Balance sheets as of December 31

2021 2020

Assets

Cash and equivalents $15,000 $14,000

Accounts receivable 35,000 30,000

Inventories 33,320 27,000

Total current assets $83,320 $71,000

Net plant and equipment 48,000 46,000

Total assets $131,320 $117,000

Liabilities and Equity

Accounts payable $10,100 $9,000

Accruals 8,000 6,000

Notes payable 7,000 5,050

Total current liabilities $25,100 $20,050

Long-term bonds 20,000 20,000

Total liabilities $45,100 $40,050

Common stock (4,000 shares) 40,000 40,000

Retained earnings 46,220 36,950

Common equity $86,220 $76,950

Total liabilities and equity $131,320 $117,000

Income statement for Year ending December 31, 2021

Sales $210,000

Operating costs excluding depreciation and amortization 160,000

EBITDA $50,000

Depreciation and amortization 6,000

EBIT $44,000

Interest 5,350

EBT $38,650

Taxes (25%) 9,663

Net income $28,988

Dividends paid $19,718

a. What was net operating working capital for 2020 and 2021? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.

b. What was Arlington's 2021 free cash flow?

c. Construct Arlington's 2021 statement of stockholders' equity.

d. What was Arlington's 2021 EVA? Assume that its after-tax cost of capital is 10%.

e. What was Arlington's MVA at year-end 2021? Assume that its stock price at December 31, 2021 was $25.