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Web site 74.000 31,500 Begin with the partial model in the file Choz P21 Build a Modd.xlsx on the textbook a. Using the financial statements

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Web site 74.000 31,500 Begin with the partial model in the file Choz P21 Build a Modd.xlsx on the textbook a. Using the financial statements shown here for Lan & Chen Technologies calculate net operating working capital, total net operating capital net operating protit after taxes, free cash flow, and return on invested capital for 2030. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was $65 per share, and the after-tax cost of capital was ION Calculate EVA and MVA for 2020 lan & Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812.700 EBITDA $132.300 $126.000 Depreciation and amortization 33.100 EBIT $ 99,200 $ 94,500 10.400 8.900 Pre-tax earnings 5 88.800 $ 85,600 Taxes (25%) 22 200 21.400 Net income 5 66.600 5.64.200 Common dividends $ 43,300 $ 41,230 Addition to retained earnings $ 23_300 $22.970 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) 2020 2019 Assets Cash and cash equivalents 5 47.250 $ 45,000 Short-term investments 3.800 3.600 Accounts receivable 283.500 270,000 Inventories 141.750 135,000 Total current assets 5476,300 $453.600 Net fixed assets 330,750 315.000 Total assets $ 807050 $768,600 Interest expense Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity otal liabilities and equity $ 94,500 47.250 17400 $ 159,150 90,000 $ 249,150 S114,600 113.300 $ 557900 S807050 $ 90,000 45.000 9,000 $144.000 90.000 $234,000 $144,600 90,000 $534,600 5768.600 Give and explain one specific example of how the corporate accountants for the company you are studying might be able to legally change their earnings to portray a more favorable earnings statement? Use evidence from the narrative or notes of the annual report NLT Wednesday

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