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Finance 410: HW 5 Print Name Fall 2020 Due Tuesday Oct. 13, 2020 at the beginning of class.. Instructions: Show all of your work for maximum credit. There are 40 points possible. 1. Use the financial statements for Naples Industrial. a) (30 points) Calculate the free cash flow from both an operating and financing perspective (using the same format as in class) for Naples Industrial for 2020. b) (5 points) Calculate the return on invested capital for Naples for 2020. If the WACC is 13%, is the company creating value for shareholders? c) (5 points) Calculate the economic value added for the 2020 year, HW Fall 2020 Naples Industrial Financial Statements 2020 2019 Balance Sheet Cash Short term investments Accounts Receivable Inventories Total Current Assets Equipment, machinery etc. Buildings etc. less: allowance for depreciation Net fixed Assets Total Assets $ $ $ $ $ $ $ $ $ $ 32.110.00 $ 53,600.00 $ 677.160.00 $ 1,429,000.00 $ 2,191.870.00 $ 510,632.00 $ 742,950.00 $ 343, 160.00 $ 910,422.00 $ 3,102,292.00 $ 13,000.00 38,000.00 637,160.00 1,286,360.00 1,974.520.00 500,000.00 702,950.00 263, 160.00 939.790.00 2.914 310.00 Accounts Payable Notes Payable accruals Total Current liabilities Long-term debt Common Stock Retained Earnings Total common equity Total Liabilities and Equity $ $ $ $ $ $ $ $ $ 341,000.00 $ 683,000.00 $ 347,500.00 $ 1.371,500.00 $ 892,000.00 $ 470,000.00 $ 368,792.00 $ 838,792.00 $ 3.102.292.00 $ 323,000.00 725,718.00 284,960.00 1.333,678.00 1,000,000.00 460,000.00 120,632.00 580,632.00 2.914, 310.00 $ $ $ 6,178,000.00 $ 4,780,000.00 $ 1,398,000.00 $ 5,896,000.00 4,550,000.00 1,346,000.00 $ $ Income Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Fixed Cash op. Expense Variable op. Expense Depreciation Total operating expense Earnings before Interest and Taxes Interest Eamings before Taxes Taxes (40%) Net Income $ $ $ $ $ $ $ 354,000.00 $ 332,000.00 $ 85,000.00 $ 771,000.00 $ 627,000.00 $ 110,000.00 $ 517,000.00 $ 206,800.00 $ 310,200.00 $ 340,000.00 276,000.00 116,960.00 732.960.00 613,040.00 120,000.00 493,040.00 197,216.00 295,824.00 Finance 410: HW 5 Print Name Fall 2020 Due Tuesday Oct. 13, 2020 at the beginning of class.. Instructions: Show all of your work for maximum credit. There are 40 points possible. 1. Use the financial statements for Naples Industrial. a) (30 points) Calculate the free cash flow from both an operating and financing perspective (using the same format as in class) for Naples Industrial for 2020. b) (5 points) Calculate the return on invested capital for Naples for 2020. If the WACC is 13%, is the company creating value for shareholders? c) (5 points) Calculate the economic value added for the 2020 year, HW Fall 2020 Naples Industrial Financial Statements 2020 2019 Balance Sheet Cash Short term investments Accounts Receivable Inventories Total Current Assets Equipment, machinery etc. Buildings etc. less: allowance for depreciation Net fixed Assets Total Assets $ $ $ $ $ $ $ $ $ $ 32.110.00 $ 53,600.00 $ 677.160.00 $ 1,429,000.00 $ 2,191.870.00 $ 510,632.00 $ 742,950.00 $ 343, 160.00 $ 910,422.00 $ 3,102,292.00 $ 13,000.00 38,000.00 637,160.00 1,286,360.00 1,974.520.00 500,000.00 702,950.00 263, 160.00 939.790.00 2.914 310.00 Accounts Payable Notes Payable accruals Total Current liabilities Long-term debt Common Stock Retained Earnings Total common equity Total Liabilities and Equity $ $ $ $ $ $ $ $ $ 341,000.00 $ 683,000.00 $ 347,500.00 $ 1.371,500.00 $ 892,000.00 $ 470,000.00 $ 368,792.00 $ 838,792.00 $ 3.102.292.00 $ 323,000.00 725,718.00 284,960.00 1.333,678.00 1,000,000.00 460,000.00 120,632.00 580,632.00 2.914, 310.00 $ $ $ 6,178,000.00 $ 4,780,000.00 $ 1,398,000.00 $ 5,896,000.00 4,550,000.00 1,346,000.00 $ $ Income Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Fixed Cash op. Expense Variable op. Expense Depreciation Total operating expense Earnings before Interest and Taxes Interest Eamings before Taxes Taxes (40%) Net Income $ $ $ $ $ $ $ 354,000.00 $ 332,000.00 $ 85,000.00 $ 771,000.00 $ 627,000.00 $ 110,000.00 $ 517,000.00 $ 206,800.00 $ 310,200.00 $ 340,000.00 276,000.00 116,960.00 732.960.00 613,040.00 120,000.00 493,040.00 197,216.00 295,824.00
