Parti The Company and Its Environment 2-21) odel: ows MVA rce 31.500 Begin with the partial model in the file Cho2 P21 Build a Model.xlsx on the textbook's Web site. a. Using the financial statements shown here for Lan & Chien Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25% b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020, Lan & Chen Technologies Income Statements for Year Ending December 31 (Millions of dollars) 2020 2019 Sales 5945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132.300 $126,000 Depreciation and amortization 33,100 EBIT $ 99,200 $ 94,500 Interest expense 10,400 8.900 Pre-tax earnings $ 88,800 $ 85,600 Taxes (25%) 22.200 21.400 Net income $ 66,600 $.64.200 Common dividends $ 43,300 $ 41.230 Addition to retained earnings $ 23,300 $ 22.970 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) 2020 2019 Assets Cash and cash equivalents $ 47,250 $ 45,000 Short-term investments 3,800 3,600 Accounts receivable 283,500 270,000 Inventories 141.750 135,000 Total current assets S476,300 $453,600 Net fixed assets 330.750 315,000 Total assets $ 807050 $768.600 Liabilities and Equity Accounts payable $ 94,500 $ 90,000 Accruals 47,250 45,000 Notes payable 17.400 9.000 Total current liabilities $ 159,150 $144,000 Long-term debt 90.000 90.000 Total liabilities $ 249,150 Common stock $234,000 $444,600 Retained earnings $444,600 Total common equity 113.300 90,000 Total liabilities and equity $ 557.900 S534,600 $807,050 $768,600