PROBLEM Ch3/Q12 Bailey Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2012 2011 Assets Cash and equivalents $14.000 $13,000 Accounts receivable 30,000 25.000 Inventories 28.125 21.000 Total current assets $72,125 $59,000 Net plant and equipment 50.000 47.000 Total assets $122.125 $106.000 Liabilities and Equity Accounts payable $10,800 $9,000 Notes payable 6.700 5,150 Accruals 7.600 6.000 Total current liabilities $25,100 $20,150 Long term bonds 15.000 15.000 Total debt $40,100 $35.150 Common stock (5,000 shares) 50.000 50.000 Retaining earnings 32.025 20.850 Common equity $82.025 $70.850 Total liabilities and equity $122.125 $106.000 PROBLEM Ch3/Q12 / Income Statement for Year Ending December 31, 2012 Sales $214,000 Operating costs excluding depreciation and amortization 170.000 EBITDA $ 44,000 Deprecition & amortization 5.000 EBIT $ 39,000 Interest 1.750 EBT $ 37,250 Taxes (40%) 14.900 Net income $ 22,350 Dividends paid $ 11,175 a. What was net operating working capital for 2011 and 2012? b. What was Bailey's 2012 free cash flow? c. Constuct Bailey's 2012 statement of stockholders' equity. d. What was Bailey's 2012 EVA? Assume that its weighted average cost of capital is 10%