Homework Assignment #2 Answer the following questions using MS-Excel. You must show all your work and clearly identify your variables used for each calculation. You must show all work to receive credit. Show two (2) decimal places with all dollar amounts and four (4) decimal places with all percentages (i.e., .1045 = 10.45%).

Use the financial statements for Lauren Corp. found below to answer Questions 1.

What was Laurens NOPAT in 2020? Explain what NOPAT represents and why it is important for determining a companys intrinsic value.

Bal Sheet

Inc Stmt

Lauren Corporation Balance Sheets as at September 30, Millions of USD 2019 2020 As % of Total Assets 2019 2020 875 8.4% 8.1% 6.7% 9.7% Assets Cash and Equivalents Marketable Securities Accounts Receivable Inventories Total Current Assets 700 1,725 2,445 5,745 1,045 1,250 2,310 2,995 7,600 16.6% 23.5% 55.2% 17.9% 23.3% 59.1% 116.1% Gross Plant and Equipment Accumulated Depreciation Net Plant and Equipment 12,070 7,415 4,655 14,005 8,735 5,270 71.3% 108.8% 67.9% 40.9% 44.8% Total Assets 10,400 12,870 100.0% 100.0% 1,175 10.4% 9.1% Liabilities and Equity Accounts Payable Notes Payable Accruals Total Current Liabilities 1,080 740 975 7.1% 7.6% 1,865 15.4% 14.5% 1,600 3,420 4,015 32.9% 31.2% Long-Term Debt Total Liabilities 4,000 7,420 4,375 8,390 38.5% 71.3% 34.0% 65.2% 500 500 380 4.8% 3.7% Common Stock (100M shares) Additional Paid-in-Capital Retained Earnings Total Equity 380 3,600 3.9% 3.0% 28.0% 34.8% 2,100 20.2% 28.7% 2,980 4,480 Total Liabilities and Equity 10,400 12,870 100.0% 100.0% Lauren Corporation Income Statements for fiscal years ended September 30, Millions of USD 2019 2020 as a % of Net Sales 2019 2020 Net Sales 32,600.0 37,450.0 100.00% 100.00% Cost of Sales 23,450.0 26,320.0 71.93% 70.28% Gross Profit 9,150.0 11,130.0 28.07% 29.72% Less Other Costs: Rent 800.0 1,000.0 2.45% 2.67% Salaries 1,250.0 1,475.0 3.83% 3.94% S, G & A Expenses 4,190.0 4,200.0 12.85% 11.21% Depreciation 990.0 1,320.0 3.04% 3.52% Interest Expense 565.0 635.0 1.73% 1.70% Total Costs 7,795.0 8,630.0 23.91% 23.04% Earnings Before Taxes (EBT) 1,355.0 2,500.0 4.16% 6.68% Income Taxes (40%) 542.0 1,000.0 1.66% 2.67% Net Income 813.0 1,500.0 2.49% 4.01%