c. Construct Arlington's 2021 statement of stockholders' equity. Balances, 12/31/20 2021 Net Income Cash Dividends Addition to retained earnings Balances, 12/31/21 Shares Statement of Stockholders' Equity, 2021 Common Stock million $ million $ Amount million $ million $ Retained Earnings Total Stockholders' Equity million $ million million million $ million million million

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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Enter 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$
43,000 million
51,790 million
b. What was Arlington's 2021 free cash flow?
$
26,900 million
c. Construct Arlington's 2021 statement of stockholders' equity.
Shares
$
Statement of Stockholders' Equity, 2021
Common Stock
Amount
million $
Balances, 12/31/20
2021 Net Income
Cash Dividends
Addition to retained earnings
Balances, 12/31/21
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.
$
20,791 million
e. 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.
6,410 million
million $
Retained
Earnings
million $
Total Stockholders'
Equity
million $
million
million
million $
million
million
million
Transcribed Image Text:Enter 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$ 43,000 million 51,790 million b. What was Arlington's 2021 free cash flow? $ 26,900 million c. Construct Arlington's 2021 statement of stockholders' equity. Shares $ Statement of Stockholders' Equity, 2021 Common Stock Amount million $ Balances, 12/31/20 2021 Net Income Cash Dividends Addition to retained earnings Balances, 12/31/21 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. $ 20,791 million e. 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. 6,410 million million $ Retained Earnings million $ Total Stockholders' Equity million $ million million million $ million million million
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.
Assets
Cash and equivalents
Accounts receivable
Inventories
Balance Sheets as of December 31
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term bonds
Total liabilities
Common stock (4,000 shares)
Retained earnings
Common equity
Total liabilities and equity
EBIT
Interest
Sales
Operating costs excluding depreciation and amortization
EBITDA
Depreciation & amortization
EBT
Taxes (25%)
Net income
Dividends paid
2021
$ 15,000
35,000
34,190
$ 84,190
48,000
$132,190
$ 10,100
7,300
6,200
Income Statement for Year Ending December 31, 2021
$ 23,600
15,000
$ 38,600
60,000
33,590
$ 93,590
$132,190
2020
$ 13,000
30,000
28,000
$ 71,000
47,000
$118,000
$9,000
6,000
5,050
$ 20,050
15,000
$ 35,050
60,000
22,950
$82,950
$118,000
$219,000
170,000
$ 49,000
6,000
$ 43,000
3,650
$ 39,350
9,837.50
$29,512.50
$18,872.50
Enter 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.
Transcribed Image Text:Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Assets Cash and equivalents Accounts receivable Inventories Balance Sheets as of December 31 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (4,000 shares) Retained earnings Common equity Total liabilities and equity EBIT Interest Sales Operating costs excluding depreciation and amortization EBITDA Depreciation & amortization EBT Taxes (25%) Net income Dividends paid 2021 $ 15,000 35,000 34,190 $ 84,190 48,000 $132,190 $ 10,100 7,300 6,200 Income Statement for Year Ending December 31, 2021 $ 23,600 15,000 $ 38,600 60,000 33,590 $ 93,590 $132,190 2020 $ 13,000 30,000 28,000 $ 71,000 47,000 $118,000 $9,000 6,000 5,050 $ 20,050 15,000 $ 35,050 60,000 22,950 $82,950 $118,000 $219,000 170,000 $ 49,000 6,000 $ 43,000 3,650 $ 39,350 9,837.50 $29,512.50 $18,872.50 Enter 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.
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