Excel Activity: Financial Statements, Cash Flow, and Taxes Laiho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown. Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) 2021 2020 Cash $ 106,278 $ 91,660 Accounts receivable 103,347 85,164 Inventories 38,965 35,757 Total current assets $ 248,590 $ 212,581 Net fixed assets 67,963 42,749 Total assets $ 316,553 $ 255,330 Accounts payable $ 30,151 $ 22,600 Accruals 31,711 24,202 Notes payable 17,606 14,626 Total current liabilities $ 79,468 $ 61,428 Long-term debt 77,320 64,070 Total liabilities $ 156,788 $ 125,498 Common stock 100,500 88,000 Retained earnings 59,265 41,832 Total common equity $ 159,765 $ 129,832 Total liabilities and equity $ 316,553 $ 255,330 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any. Download spreadsheet Financial Statements, Cash Flow, and Taxes-db38b3.xlsx Sales for 2021 were $432,650,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $7,748,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement. Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars) 2021 Sales $ fill in the blank 2 Operating costs excluding depreciation and amortization fill in the blank 3 EBITDA $ fill in the blank 4 Depreciation and amortization fill in the blank 5 EBIT $ fill in the blank 6 Interest fill in the blank 7 EBT $ fill in the blank 8 Taxes (25%) fill in the blank 9 Net income $ fill in the blank 10 Common dividends $ fill in the blank 11 Addition to retained earnings $ fill in the blank 12 Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year. Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars) Common Stock Retained Earnings Total Stockholders' Equity Balances, December 31, 2020 $ fill in the blank 13 $ fill in the blank 14 $ fill in the blank 15 Common stock issue fill in the blank 16 fill in the blank 17 2021 Net income fill in the blank 18 Cash dividends fill in the blank 19 Addition to retained earnings fill in the blank 20 Balances, December 31, 2021 $ fill in the blank 21 $ fill in the blank 22 $ fill in the blank 23 Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income $ fill in the blank 24 Depreciation and amortization fill in the blank 25 Increase in accounts payable fill in the blank 26 Increase in accruals fill in the blank 27 Increase in accounts receivable fill in the blank 28 Increase in inventories fill in the blank 29 Net cash provided by operating activities $ fill in the blank 30 Investing Activities Additions to property, plant, and equipment $ fill in the blank 31 Net cash used in investing activities $ fill in the blank 32 Financing Activities Increase in notes payable $ fill in the blank 33 Increase in long-term debt fill in the blank 34 Increase in common stock fill in the blank 35 Payment of common dividends fill in the blank 36 Net cash provided by financing activities $ fill in the blank 37 Summary Net increase/decrease in cash $ fill in the blank 38 Cash at the beginning of the year fill in the blank 39 Cash at the end of the year $ fill in the blank 40 Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. NOWC2020: $ fill in the blank 41 thousand NOWC2021: $ fill in the blank 42 thousand FCF2021: $ fill in the blank 43 thousand If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders? If Laiho increased its dividend payout ratio, the firm would pay corporate taxes and the company's shareholders would pay taxes on the dividends they would receive. Assume that the firm's after-tax cost of capital is 9.5%. What is the firm's 2021 EVA? $ fill in the blank 46 thousand Assume that the firm's stock price is $22 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021? $ fill in the blank 47 thousand

Excel Activity: Financial Statements, Cash Flow, and Taxes Laiho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown. Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) 2021 2020 Cash $ 106,278 $ 91,660 Accounts receivable 103,347 85,164 Inventories 38,965 35,757 Total current assets $ 248,590 $ 212,581 Net fixed assets 67,963 42,749 Total assets $ 316,553 $ 255,330 Accounts payable $ 30,151 $ 22,600 Accruals 31,711 24,202 Notes payable 17,606 14,626 Total current liabilities $ 79,468 $ 61,428 Long-term debt 77,320 64,070 Total liabilities $ 156,788 $ 125,498 Common stock 100,500 88,000 Retained earnings 59,265 41,832 Total common equity $ 159,765 $ 129,832 Total liabilities and equity $ 316,553 $ 255,330 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any. Download spreadsheet Financial Statements, Cash Flow, and Taxes-db38b3.xlsx Sales for 2021 were $432,650,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $7,748,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement. Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars) 2021 Sales $ fill in the blank 2 Operating costs excluding depreciation and amortization fill in the blank 3 EBITDA $ fill in the blank 4 Depreciation and amortization fill in the blank 5 EBIT $ fill in the blank 6 Interest fill in the blank 7 EBT $ fill in the blank 8 Taxes (25%) fill in the blank 9 Net income $ fill in the blank 10 Common dividends $ fill in the blank 11 Addition to retained earnings $ fill in the blank 12 Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year. Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars) Common Stock Retained Earnings Total Stockholders' Equity Balances, December 31, 2020 $ fill in the blank 13 $ fill in the blank 14 $ fill in the blank 15 Common stock issue fill in the blank 16 fill in the blank 17 2021 Net income fill in the blank 18 Cash dividends fill in the blank 19 Addition to retained earnings fill in the blank 20 Balances, December 31, 2021 $ fill in the blank 21 $ fill in the blank 22 $ fill in the blank 23 Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income $ fill in the blank 24 Depreciation and amortization fill in the blank 25 Increase in accounts payable fill in the blank 26 Increase in accruals fill in the blank 27 Increase in accounts receivable fill in the blank 28 Increase in inventories fill in the blank 29 Net cash provided by operating activities $ fill in the blank 30 Investing Activities Additions to property, plant, and equipment $ fill in the blank 31 Net cash used in investing activities $ fill in the blank 32 Financing Activities Increase in notes payable $ fill in the blank 33 Increase in long-term debt fill in the blank 34 Increase in common stock fill in the blank 35 Payment of common dividends fill in the blank 36 Net cash provided by financing activities $ fill in the blank 37 Summary Net increase/decrease in cash $ fill in the blank 38 Cash at the beginning of the year fill in the blank 39 Cash at the end of the year $ fill in the blank 40 Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. NOWC2020: $ fill in the blank 41 thousand NOWC2021: $ fill in the blank 42 thousand FCF2021: $ fill in the blank 43 thousand If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders? If Laiho increased its dividend payout ratio, the firm would pay corporate taxes and the company's shareholders would pay taxes on the dividends they would receive. Assume that the firm's after-tax cost of capital is 9.5%. What is the firm's 2021 EVA? $ fill in the blank 46 thousand Assume that the firm's stock price is $22 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021? $ fill in the blank 47 thousand

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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Excel Activity: Financial Statements, Cash Flow, and Taxes

Laiho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown.

Laiho Industries: Balance Sheets as of December 31 (thousands of dollars)
	2021		2020
Cash	$	106,278		$	91,660
Accounts receivable		103,347			85,164
Inventories		38,965			35,757
Total current assets	$	248,590		$	212,581
Net fixed assets		67,963			42,749
Total assets	$	316,553		$	255,330

Accounts payable	$	30,151		$	22,600
Accruals		31,711			24,202
Notes payable		17,606			14,626
Total current liabilities	$	79,468		$	61,428
Long-term debt		77,320			64,070
Total liabilities	$	156,788		$	125,498
Common stock		100,500			88,000
Retained earnings		59,265			41,832
Total common equity	$	159,765		$	129,832
Total liabilities and equity	$	316,553		$	255,330

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any.

Download spreadsheet Financial Statements, Cash Flow, and Taxes-db38b3.xlsx

Sales for 2021 were $432,650,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $7,748,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement.

Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars)
	2021
Sales	$ fill in the blank 2
Operating costs excluding depreciation and amortization	fill in the blank 3
EBITDA	$ fill in the blank 4
Depreciation and amortization	fill in the blank 5
EBIT	$ fill in the blank 6
Interest	fill in the blank 7
EBT	$ fill in the blank 8
Taxes (25%)	fill in the blank 9
Net income	$ fill in the blank 10

Common dividends	$ fill in the blank 11
Addition to retained earnings	$ fill in the blank 12

Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year.

Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars)
	Common Stock	Retained Earnings	Total Stockholders' Equity
Balances, December 31, 2020		$ fill in the blank 13		$ fill in the blank 14	$ fill in the blank 15
Common stock issue		fill in the blank 16			fill in the blank 17
2021 Net income				fill in the blank 18
Cash dividends				fill in the blank 19
Addition to retained earnings					fill in the blank 20
Balances, December 31, 2021		$ fill in the blank 21		$ fill in the blank 22	$ fill in the blank 23

Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars)
	2021
Operating Activities
Net income	$ fill in the blank 24
Depreciation and amortization	fill in the blank 25
Increase in accounts payable	fill in the blank 26
Increase in accruals	fill in the blank 27
Increase in accounts receivable	fill in the blank 28
Increase in inventories	fill in the blank 29
Net cash provided by operating activities	$ fill in the blank 30
Investing Activities
Additions to property, plant, and equipment	$ fill in the blank 31
Net cash used in investing activities	$ fill in the blank 32
Financing Activities
Increase in notes payable	$ fill in the blank 33
Increase in long-term debt	fill in the blank 34
Increase in common stock	fill in the blank 35
Payment of common dividends	fill in the blank 36
Net cash provided by financing activities	$ fill in the blank 37
Summary
Net increase/decrease in cash	$ fill in the blank 38
Cash at the beginning of the year	fill in the blank 39
Cash at the end of the year	$ fill in the blank 40

Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash.

NOWC₂₀₂₀: $  fill in the blank 41 thousand

NOWC₂₀₂₁: $  fill in the blank 42 thousand

FCF₂₀₂₁: $  fill in the blank 43 thousand
If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?

If Laiho increased its dividend payout ratio, the firm would pay

corporate taxes and the company's shareholders would pay

taxes on the dividends they would receive.
Assume that the firm's after-tax cost of capital is 9.5%. What is the firm's 2021 EVA?

$ fill in the blank 46 thousand
Assume that the firm's stock price is $22 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021?

$ fill in the blank 47 thousand

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