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	$12,000	$11,000
Accounts receivable	35,000	30,000
Inventories	32,090	28,000
Total current assets	$79,090	$69,000
Net plant and equipment	52,000	48,000
Total assets	$131,090	$117,000
Liabilities and Equity
Accounts payable	$10,800	$8,500
Accruals	7,500	5,000
Notes payable	6,600	5,050
Total current liabilities	$ 24,900	$ 18,550
Long-term bonds	15,000	15,000
Total liabilities	$ 39,900	$ 33,550
Common stock (4,000 shares)	50,000	50,000
Retained earnings	41,190	33,450
Common equity	$91,190	$83,450
Total liabilities and equity	$131,090	$117,000

Income Statement for Year Ending December 31, 2016
Sales	$236,000
Operating costs excluding depreciation and amortization	190,000
EBITDA	$ 46,000
Depreciation & amortization	4,000
EBIT	$ 42,000
Interest	3,800
EBT	$ 38,200
Taxes (40%)	15,280
Net income	$ 22,920
Dividends paid	15,180

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
5. What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $million