Question
The following income statements and other information are available for the Golden Company: 2020 2019 2018 Sales $433,200,000 $285,000,000 $216,600,000 Less cost of goods sold
The following income statements and other information are available for the Golden Company:
2020 | 2019 | 2018 | ||||
---|---|---|---|---|---|---|
Sales | $433,200,000 | $285,000,000 | $216,600,000 | |||
Less cost of goods sold | 239,400,000 | 136,800,000 | 103,740,000 | |||
Gross margin | 193,800,000 | 148,200,000 | 112,860,000 | |||
Less: | ||||||
Selling and administrative costs | 31,350,000 | 28,215,000 | 22,321,200 | |||
Research and development | 13,010,400 | 14,136,000 | 10,773,000 | |||
Income from operations | 149,439,600 | 105,849,000 | 79,765,800 | |||
Less taxes on income | 29,887,920 | 21,169,800 | 15,953,160 | |||
Net income | $119,551,680 | $84,679,200 | $63,812,640 | |||
Total assets | $815,100,000 | $758,100,000 | $502,740,000 | |||
Noninterest-bearing current liabilities | 15,960,000 | 12,882,000 | 11,263,200 | |||
Cost of capital | 12% | 12% | 12% |
Calculate EVA for 2020. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over three years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725. Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
EVA for 2020 | $____ EVA for 2020 in dollars |
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