Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2016 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2017 $100 $ 275 375 $750 2,000 $2.750 $85 200 250 $635 1,490 $2,125 $85 $150 75 150 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $375 450 1,225 700 $2,750 50 75 $210 290 1,225 400 $2,125 Income Statements: 2016 $1,500 1,000 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest 2017 $2,000 1,250 $750 100 $650 62 $588 235 $500 75 $425 45 $380 152 EBT Taxes (40%) Net income $353 $228 Dividends paid Addition to retained earnings $53 $300 $48 $180 170 Shares outstanding Price WACC 170 $27.75 9.00% $25.28 Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollar. Do not round intermediate calculations. $ Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations. $ Icon Key Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2016 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2017 $100 $ 275 375 $750 2,000 $2.750 $85 200 250 $635 1,490 $2,125 $85 $150 75 150 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $375 450 1,225 700 $2,750 50 75 $210 290 1,225 400 $2,125 Income Statements: 2016 $1,500 1,000 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest 2017 $2,000 1,250 $750 100 $650 62 $588 235 $500 75 $425 45 $380 152 EBT Taxes (40%) Net income $353 $228 Dividends paid Addition to retained earnings $53 $300 $48 $180 170 Shares outstanding Price WACC 170 $27.75 9.00% $25.28 Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollar. Do not round intermediate calculations. $ Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations. $ Icon Key
