Use the financial statements from Lan & Chen Tech. Please Show Work.

A- Calculate NOPAT, FCF, and ROIC for 2020.

B- In 2020 how much of the FCF did Lan & Chen Tech use for: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments?

C- Calculate and interpret the following financial ratios from Lan & Chen Tech for 2020:

• Quick ratio and current ratio
• Days sales outstanding
• Times interest earned
• P/E Ratio
• ROE using the extended DuPont formula

Lan & Chen Tech. Income Statements ($ millions) Sales Operating costs excluding depreciation Depreciation and amortization EBIT - earnings before interest and taxes Interest expense Taxable income Taxes (25%) Net Income 2020 $945,000 812,700 33,100 99,200 10,400 88,800 22,200 $66,600 43,300 23,300 2019 $900,000 774,000 31,500 94,500 8,900 85,600 21,400 $64,200 41,230 22,970 Common dividends Addition to retained earnings 2020 2019 Lan & Chen Tech. Balance Sheets ($ millions) Assets Cash Short-term investments Accounts receivable Inventories $47,250 3,800 283,500 141,750 476,300 330,750 $807,050 $45,000 3,600 270,000 135,000 453,600 315,000 $768,600 Total current assets Net fixed assets Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $94,500 47,250 17,400 159,150 90,000 249,150 444,600 113,300 557,900 $807,050 $90,000 45,000 9,000 144,000 90,000 234,000 444,600 90,000 534,600 $768,600 Lan & Chen Tech. Other Data Shares outstanding (millions) Year-end stock price per share (PPS) Federal plus state tax rate 2020 15,000 $65.00 25.00% 2019 15,000 $63.20 25.00% 6 Cost of capital (WACC) 10.00% 10.00%