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	$ 15,000		$ 14,000
Accounts receivable	25,000		20,000
Inventories	24,985		17,000
Total current assets	$ 64,985		$ 51,000
Net plant and equipment	47,000		45,000
Total assets	$111,985		$96,000
Liabilities and Equity
Accounts payable	$ 10,600		$ 8,000
Accruals	7,600		7,000
Notes payable	6,400		5,000
Total current liabilities	$ 24,600		$ 20,000
Long-term bonds	10,000		10,000
Total liabilities	$ 34,600		$ 30,000
Common stock (4,000 shares)	60,000		60,000
Retained earnings	17,385		6,000
Common equity	$ 77,385		$ 66,000
Total liabilities and equity	$111,985		$96,000

Income Statement for Year Ending December 31, 2016
Sales	$220,000
Operating costs excluding depreciation and amortization	170,000
EBITDA	$ 50,000
Depreciation & amortization	6,000
EBIT	$ 44,000
Interest	7,850
EBT	$ 36,150
Taxes (40%)	14,460
Net income	$ 21,690
Dividends paid	10,305

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