Part a. Cumberland Industries' most recent sales were $650,000,000; operating costs (excluding depreciation) were equal to 70% of sales; net fixed assets were $75,000,000; depreciation amounted to 12% of net fixed assets; interest expenses were $7,000,000; the state-plus-federal corporate tax rate was 40% and Cumberland paid 20% of its net income out in dividends. Given this information, construct Cumberland's income statement. Also calculate total dividends and the addition to retained earnings.

Cumberland Industries:

Income Statement (Thousands of dollars) 2019 Sales ?

Operating costs excluding depreciation ? EBITDA ? Depreciation (Cumberland has no amortization charges) ? EBIT ? Interest expense ? EBT ? Taxes (40%) ? Net income ? Common dividends ? Addition to retained earnings ? Part b. Cumberland Industries' partial balance sheets are shown below. Cumberland issued $20,000,000 of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity. Cumberland Industries December 31 Balance Sheets (in thousands of dollars) 2019 2018 Assets Cash and cash equivalents $121,620 $74,625 Short-term investments 27,300 15,100 Accounts Receivable 108,470 85,527 Inventories 56,450 34,982 Total current assets $313,840 $210,234 Net fixed assets 75,000 42,436 Total assets $388,840 $252,670 Liabilities and equity Accounts payable $30,761 $23,109 Accruals 30,405 22,656 Notes payable 12,717 14,217 Total current liabilities $73,883 $59,982 Long-term debt 80,263 63,914 Total liabilities $154,146 $123,896 Common stock ? $90,000 Retained earnings ? 38,774 Total common equity ? $128,774 Total liabilities and equity ? $252,670 Part c. Calculating Free Cash Flow and ROIC ratio of the firm using the statements you create in parts a and b.