Question

FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents $  14,000 $  11,000 Accounts receivable 35,000 30,000 Inventories 31,975 28,000   Total current assets $ 80,975 $ 69,000 Net plant and equipment 50,000 45,000 Total assets $130,975 $114,000 Liabilities and Equity Accounts payable $ 10,500 $  9,500 Accruals 7,800 7,000 Notes payable 6,700 5,250   Total current liabilities $ 25,000 $ 21,750 Long-term bonds 10,000 10,000   Total liabilities $ 35,000 $ 31,750 Common stock (4,000 shares) 50,000 50,000 Retained earnings 45,975 32,250   Common equity $ 95,975 $ 82,250 Total liabilities and equity $130,975 $114,000 Income Statement for Year Ending December 31, 2016 Sales $207,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $ 47,000 Depreciation & amortization 6,000 EBIT $ 41,000 Interest 5,800 EBT $ 35,200 Taxes (40%) 14,080 Net income $ 21,120 Dividends paid 7,395 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. What was net operating working capital for 2015 and 2016? 2015 $ million 2016 $ million What was Arlington's 2016 free cash flow? $ million Construct Arlington's 2016 statement of stockholders' equity. Common Stock Retained Earnings Total Stockholders' Equity Shares Amount Balances, 12/31/15 million $ million $ million $ million 2016 Net Income million Cash Dividends million Addition to retained earnings million Balances, 12/31/16 million $ million $ million $ million What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $   million What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $   million

Answer 1

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