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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Do my A, B & C answers Look Correct? Could you Help me with C, D & E?
WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Blue Water Prime Fish $ 42,400 45,000 $ 19,600 35,200 Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 425,800 Income statement Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data Per share stock price at end of current year Average income tax rate $ 426,000 (234,000) (163,800) 92,000 161,000 85,400 $ 425,800 $ 92,000 74,800 157,800 30,400 70,800 48,400 417,800 319,000 $ 840,000 $ 70,000 62,800 526,000 107,400 73,800 $ 840,000 $ 788,000 (401,400) (312,400) $ 28,200 $ 74,200 $ 23.4 30% $ 29 30% Dividends declared and paid in current year $ 34,400 $ 155,000 Both companies are in the fish catching and manufacturing…
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Current assets Items Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Park $ 92,500 114,500 $ 207,000 $ 44,000 64,000 99,000 Strand $ 31,050 49,700 $ 80,750 $ 30,750 0 50,000 $ 207,000 $ 80,750 On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $58,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: a. Current assets b. Noncurrent assets c. Current…
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Items Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Park $ 74,500 92,250 $ 166,750 $ 32,000 51,750 83,000 $166,750 Strand $ 16,050 46,200 $ 62,250 $ 12,250 0 50,000 $ 62,250 On January 2, Park borrowed $66,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $66,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: a. Current assets b. Noncurrent assets c. Current…
The following items are reported on a company's balance sheet: Cash $112,300 Marketable securities 131,400 Accounts receivable (net) 45,200 Inventory 170,000 Accounts payable 270,000. Determine the current ratio ?
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
Condensed financial data of Granger Inc. follow. Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets GRANGER INC. Comparative Balance Sheets December 31 Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2022 $80,800 87,800 112,500 28,400 138,000 285,000 (50,000) $682,500 $102,000 16,500 110,000 220,000 234,000 $682,500 2021 $48,400 38,000 102,850 26,000 109,000 242,500 (52,000) $514,750 $67,300 21,000 146,000 175,000 105,450 $514,750
BBP, Inc., with sales of $600,000, has the following balance sheet: BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 30,000 Accounts payable $ 18,000 Accounts receivable 90,000 Accruals 36,000 Inventory 108,000 Notes payable 70,000 Current assets 228,000 Current liabilities 124,000 Fixed assets 180,000 Common stock 120,000 Retained earnings 164,000 Total assets $ 408,000 Total liabilities and equity $ 408,000 The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your…
The balance sheet for Fanning Corporation follows: $ 246,000 764,000 Current assets Long-term assets (net) Total assets $1,010,000 $ 149,000 452,000 601,000 409,000 Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity $1,010,000 Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio % Debt-to-equity ratio < Prev 5 of 6 MacE
ABCD Corp Balance Sheet and Income Statement for the period as at December 31, 2014 Balance Sheet Assets RM Cash 72,000 Accounts receivable 439,000 Inventories 894,000 Total current assets1,405,000 Fixed Assets 431,000 Total Assets1,836,000 Liabilities Accounts and Notes payable 432,000 Accruals 170,000 Total Current Liabilities 602,000 Long term debt 404,290 Common stock 575,000 Retained Earnings 254,710 Total Liabilities & Equity1,836,000 Income Statement Sales 4,290,000 Cost of goods sold 3,580,000 Selling, general, and administrative expenses 370,320 Depreciation 159,000 Earnings before taxes (EBT) 180,680 Taxes (40%) 72,272 Net Income 108,408 Per Share Data EPS RM4.71 Cash dividends per share RM0.95 P/E ratio 5 x Market Price (average) RM23.57 Number of Shares Outstanding 23,000 INDUSTRY FINANCIAL RATIO 1. Quick ratio 1.0x 2. Current ratio 2.7x 3. Inventory turnover 7.0x 4. Days sales outstanding 32 days 5. Fixed asset turnover 13.0x 6.…
Determine the amount of long-term debt for ABC Co. using the following balance sheet information: cash balance of $24,700, accounts payable of $96,526, common stock of $401,347, retained earnings of $501,930, inventory of $205,420, other assets equal to $77,911, net plant and equipment of $706,520, short-term notes payable of $30,000, and accounts receivable of $142,714. Long-Term Debt %24

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