Need help with the answers for "if sales has gone up by 10% in 2015

, calculate new results..."

a. Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year. If sales has gone up by 10% in 2015, calculate the new results accordingly and put them on the corresponding cells of new column. Lan & chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2015 2014 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBUT $99,200 $94,500 Interest Expense 10,470 8,600 $88,730 $85,900 Taxes (40%) 35,492 34,360 Net income $53,238 $51,540 1 Common dividends Addition to retained earnings $43,300 $9.938 $41,230 $10,310 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets $47,250 3,800 283,500 141,750 $476,300 330,750 $807,050 2015 2014 $45,000 3,600 270,000 135,000 $453,600 315,000 $768,600 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $94,500 47.250 26,262 $168,012 94,500 $262,512 444,600 99,938 $544,538 $807,050 $90,000 45,000 9,000 $144,000 90,000 $234,000 444,600 90,000 $534,600 $768,600 Key Input Data Tax rate 40% Net operating working capital Operating current liabilities 2015 Operating NOWC = current assets NOWC = NOWC = 2015 2015 Operating current liabilities 2014 Operating NOW = current assets NOWC = NOWC = 2014 2014 NOWC Fixed assets Total net operating capital 2015 LOC = 2015 IRC = 2015 TOC = 2014 NOWC Fixed assets 2014 2014 LOC = TQC = TQC = Investment in total net operating capital 2015 2015 Iny. In IOC = IQC 2015 Inx. In TOC = 2015 Inx. In TQC = 2014 TOS EBIL (1-T) Net operating profit after taxes 2015 NOPAT = 2015 NOPAT = 2015 NOPAT = NOPAT Net investment in operating capital Free cash flow 2015 2015 2015 ECE = ECE = ECE = NOPAT Total net operating capital Return on invested capital 2015 ROIC = 2015 ROIC = 2015 ROIC = b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent year. Additional Input Data Stock price per share # of shares (in thousands) After-tax cost of capital $65.00 15,000 8.0% # of shares Total common equity Market Value Added MVA = Stock price MVA = MVA = MVA = Economic Value Added EVA = NOPAT EVA = (Operating Capital After-tax cost of capital) EVA = EVA = a. Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year. If sales has gone up by 10% in 2015, calculate the new results accordingly and put them on the corresponding cells of new column. Lan & chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2015 2014 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBUT $99,200 $94,500 Interest Expense 10,470 8,600 $88,730 $85,900 Taxes (40%) 35,492 34,360 Net income $53,238 $51,540 1 Common dividends Addition to retained earnings $43,300 $9.938 $41,230 $10,310 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets $47,250 3,800 283,500 141,750 $476,300 330,750 $807,050 2015 2014 $45,000 3,600 270,000 135,000 $453,600 315,000 $768,600 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $94,500 47.250 26,262 $168,012 94,500 $262,512 444,600 99,938 $544,538 $807,050 $90,000 45,000 9,000 $144,000 90,000 $234,000 444,600 90,000 $534,600 $768,600 Key Input Data Tax rate 40% Net operating working capital Operating current liabilities 2015 Operating NOWC = current assets NOWC = NOWC = 2015 2015 Operating current liabilities 2014 Operating NOW = current assets NOWC = NOWC = 2014 2014 NOWC Fixed assets Total net operating capital 2015 LOC = 2015 IRC = 2015 TOC = 2014 NOWC Fixed assets 2014 2014 LOC = TQC = TQC = Investment in total net operating capital 2015 2015 Iny. In IOC = IQC 2015 Inx. In TOC = 2015 Inx. In TQC = 2014 TOS EBIL (1-T) Net operating profit after taxes 2015 NOPAT = 2015 NOPAT = 2015 NOPAT = NOPAT Net investment in operating capital Free cash flow 2015 2015 2015 ECE = ECE = ECE = NOPAT Total net operating capital Return on invested capital 2015 ROIC = 2015 ROIC = 2015 ROIC = b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent year. Additional Input Data Stock price per share # of shares (in thousands) After-tax cost of capital $65.00 15,000 8.0% # of shares Total common equity Market Value Added MVA = Stock price MVA = MVA = MVA = Economic Value Added EVA = NOPAT EVA = (Operating Capital After-tax cost of capital) EVA = EVA =