Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.Balance Sheets as of December 31AssetsCash and equivalentsAccounts receivableInventoriesTotal current assetsNet plant and equipmentTotal assetsLiabilities and EquityAccounts payableAccrualsNotes payableTotal current liabilitiesLong-term bondsTotal liabilitiesCommon stock (4,000 shares)Retained earningsCommon equityTotal llabilities and equitySalesOperating costs excluding depreciation and amortizationEBITDADepreciation & amortizationEBITInterestEBTTaxes (25%)Net IncomeDividends paldIncome Statement for Year Ending December 31, 20212021Balances, 12/31/202021 Net IncomeCash DividendsAddition to retained earningsBalances, 12/31/21$ 15,00035,00034,190$ 84,19048,000$132,190$ 10,1007,3006,200$ 23,60015,000$ 38,60060,00033,590$ 93,590$132,190c. Construct Arlington's 2021 statement of stockholders' equity.Shares$2020$ 13,00030,00028,000Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary.a. What was net operating working capital for 2020 and 2021? Assume that all cash is excess cash; I.e., this cash is not needed for operating purposes.2020$2021$millionmillionb. What was Arlington's 2021 free cash flow?$million$ 71,00047,000$118,000$9,0006,0005,050million $$ 20,05015,000$ 35,05060,00022,950$ 82,950$118,000$219,000170,000$ 49,0006,000$ 43,0003,650$ 39,3509,837.50$29,512.50$18,872.50Statement of Stockholders' Equity, 2021Common StockAmountmillion $RetainedEarningsTotal Stockholders'Equitymillion $millionmillionmillion $million $million $d. What was Arlington's 2021 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent.millionmillionmillion$millione. What was Arlington's MVA at year-end 2021? Assume that its stock price at December 31, 2021 was $25. Round your answer to the nearest cent.million

According to the question given, we need to compute the net operating working capital, free cash…

Answered: Arlington Corporation's financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Information for Crane Company is given below: Crane Company Balance Sheet December 31, 2021 Assets Equities Cash $ 302000 Accounts payable $ 625000 Accounts receivable (net) 1955000 Income taxes payable 193000 Inventories 2436000 Miscellaneous accrued payables 227000 Plant and equipment, Bonds payable (8%, due 2023) 1900000 net of depreciation 1983000 Preferred stock ($100 par, 6% Patents 262000 cumulative nonparticipating) 700000 Other intangible assets 75000 Common stock (no par, 60,000 Total Assets $7013000 shares authorized, issued and outstanding) 1127000 Retained earnings 2464000 Treasury stock-1500 shares of preferred (223000) Total Equities $7013000 Crane…
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