Years 2016 and 2017 results
In the Excel file provided, calculate the free cash flow, total operating capital, ROIC, EVA (assuming WACC = 10%) for the years 2016 and 2017.
Please show your formulas in excel or on paper.
Annual Financial Information (millions or dollars) Actual Actual Actual Income Statement 2015 2016 2017 944.0 1,000.0 Net Sales 840.0 Cost Of Goods Sold 520.0 625.0 640.0 Selling, general & administrative Depreciation 200.0 205.0 215.0 42.0 41.0 45.0 Operating profit 79.0 72.0 100.0 Interest income 0.0 1.0 0.0 Interest expense 9.0 9.0 10.0 Earnings before taxes 70.0 64.0 90.0 Taxes 28.0 42.0 25.0 39.0 36.0 54.0 Net income Dividends 12.0 11.0 16.0 Additions to RE 30.0 28.0 38.0 Actual Actual Actual Balance sheet 2015 2016 2017 Cash 42.0 47.0 50.0 Short term investments 10.0 15.0 25.0 Inventory Accounts receivable 85.0 75.0 100.0 65.0 70.0 75.0 Total current assets 192.0 217.0 250.0 Net PP&E 275.0 280.0 300.0 Total assets 467.0 497.0 550.0 Accounts payable Accrued expenses Short-term debt 80.0 70.0 75.0 8.0 10.0 10.0 50.0 30.0 25.0 Total current liabilities 138.0 110.0 110.0 Long-term debt 54.0 84.0 99.0 Total liabilities 192.0 194.0 209.0 Common stock Retained earnings 125.0 125.0 125.0 178.0 303.0 Total liabilities and equity 467.0 497.0 150.0 216.0 341.0 Total common equity 275.0 550.0 Annual Financial Information (millions or dollars) Actual Actual Actual Income Statement 2015 2016 2017 944.0 1,000.0 Net Sales 840.0 Cost Of Goods Sold 520.0 625.0 640.0 Selling, general & administrative Depreciation 200.0 205.0 215.0 42.0 41.0 45.0 Operating profit 79.0 72.0 100.0 Interest income 0.0 1.0 0.0 Interest expense 9.0 9.0 10.0 Earnings before taxes 70.0 64.0 90.0 Taxes 28.0 42.0 25.0 39.0 36.0 54.0 Net income Dividends 12.0 11.0 16.0 Additions to RE 30.0 28.0 38.0 Actual Actual Actual Balance sheet 2015 2016 2017 Cash 42.0 47.0 50.0 Short term investments 10.0 15.0 25.0 Inventory Accounts receivable 85.0 75.0 100.0 65.0 70.0 75.0 Total current assets 192.0 217.0 250.0 Net PP&E 275.0 280.0 300.0 Total assets 467.0 497.0 550.0 Accounts payable Accrued expenses Short-term debt 80.0 70.0 75.0 8.0 10.0 10.0 50.0 30.0 25.0 Total current liabilities 138.0 110.0 110.0 Long-term debt 54.0 84.0 99.0 Total liabilities 192.0 194.0 209.0 Common stock Retained earnings 125.0 125.0 125.0 178.0 303.0 Total liabilities and equity 467.0 497.0 150.0 216.0 341.0 Total common equity 275.0 550.0
