Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35,000 30,000 Inventories 33,320 27,000 Total current assets $ 83,320 $ 71,000 Net plant and equipment 48,000 46,000 Total assets $131,320 $ 117,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Accruals 8,000 6,000 Notes payable 7,000 5,050 Total current liabilities $ 25,100 $ 20,050 Long-term bonds 20,000 20,000 Total liabilities $ 45,100 $ 40,050 Common stock (4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 $ 86,220 $131,320 Common equity $ 76,950 Total liabilities and equity $ 117,000 Income Statement for Year Ending December 31, 2019 Sales $210,000 Operating costs excluding depreciation and amortization 160,000 ЕВITDA $ 50,000 Depreciation and amortization 6,000 EBIT $ 44,000 Interest 5,350 EBT $ 38,650 Тахes (25%) 9,663 Net income $ 28,988 Dividends paid $ 19,718
Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35,000 30,000 Inventories 33,320 27,000 Total current assets $ 83,320 $ 71,000 Net plant and equipment 48,000 46,000 Total assets $131,320 $ 117,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Accruals 8,000 6,000 Notes payable 7,000 5,050 Total current liabilities $ 25,100 $ 20,050 Long-term bonds 20,000 20,000 Total liabilities $ 45,100 $ 40,050 Common stock (4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 $ 86,220 $131,320 Common equity $ 76,950 Total liabilities and equity $ 117,000 Income Statement for Year Ending December 31, 2019 Sales $210,000 Operating costs excluding depreciation and amortization 160,000 ЕВITDA $ 50,000 Depreciation and amortization 6,000 EBIT $ 44,000 Interest 5,350 EBT $ 38,650 Тахes (25%) 9,663 Net income $ 28,988 Dividends paid $ 19,718
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.
a. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.
b. What was Arlington's 2019
c. Construct Arlington's 2019 statement of stockholders' equity.
d. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%.
e. What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25.
Transcribed Image Text:Balance Sheets as of December 31
2019
2018
Assets
Cash and equivalents
$ 15,000
$ 14,000
Accounts receivable
35,000
30,000
Inventories
33,320
27,000
Total current assets
$ 83,320
$ 71,000
Net plant and equipment
48,000
46,000
Total assets
$131,320
$ 117,000
Liabilities and Equity
Accounts payable
$ 10,100
$ 9,000
Accruals
8,000
6,000
Notes payable
7,000
5,050
Total current liabilities
$ 25,100
$ 20,050
Long-term bonds
20,000
20,000
Total liabilities
$ 45,100
$ 40,050
Common stock (4,000 shares)
40,000
40,000
Retained earnings
46,220
36,950
$ 86,220
$131,320
Common equity
$ 76,950
Total liabilities and equity
$ 117,000
Income Statement for Year Ending December 31, 2019
Sales
$210,000
Operating costs excluding depreciation and amortization
160,000
ЕВITDA
$ 50,000
Depreciation and amortization
6,000
EBIT
$ 44,000
Interest
5,350
EBT
$ 38,650
Тахes (25%)
9,663
Net income
$ 28,988
Dividends paid
$ 19,718
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