Statement of Cash Flow Exercise PLEXUS CORPORATION FIN 4310.001 Spring 2022 2020 2021 Cash $50,000 $60,000 Accounts Receivables 200,000 290,000 Inventories 450,000 570,000 Total Current Assets 700,000 920,000 Fixed Assets, Net 300,000 380,000 Total Assets $1,000,000 $1,300,000 Accounts Payable $140,000 $180,000 Accruals 50,000 70,000 Bank Loan 80,000 90,000 Total Current Liabilities 270,000 340,000 Long-Term Deht 400,000 550,000 Common Stock ($1 par) 50,000 50,000 Capital Surplus 200,000 200,000 Retained Earnings 80,000 160,000 Total Liab. & Equity $1,000,000 $1,300,000 2020 2021 Net Sales $1,300,000 $1,600,000 Cost of Goods Sold 780,000 960,000 Gross Profit 520,000 640,000 Marketing 130,000 160,000 General & Administrative 150,000 150,000 Depreciation 40.000 55,000 EBIT 200,000 275,000 Interest 45,000 55,000 Famings Before Taxes 155,000 220,000 Income Taxes (40% rate) 62,000 Net Income $93,000 88,000 $132,000 ADDITIONAL INFORMATION: Name A. Calculate Return on Invested Capital for 2021: B. Calculate Economic Value Added (EVA) for 2021: Cument market price for the 50,000 common shares is $40 per share. The interest rate on the debt is 6%. Interest expense is based on the average outstanding debt balance. WACC is 9%. * WACC is calculated as follows: Weights Market Cap for Equity-50,000 x $40 per share -$2,000,000 @76% Debt Outstanding (Book Value-- assume Market) - 640,000 @24% Total Capital Structure $2,640,000 100% Cost of Debt 10% x (1-1) = 10 x (1-.40)= Cost of Equity=2% +1.59 (7% - 2%) = WACC -9.0% 6.0% x.24 1.44 9.95% x.76=7.56 C. Calculate Market Value Added (MVA) for 2021: