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 $ 102,785 $ 89,530 Accounts receivable 103,454 85,552 Inventories 39,771 36,287 Total current assets $ 246,010 $ 211,369 Net fixed assets 63,528 40,673 Total assets $ 309,538 $ 252,042 Accounts payable $ 32,604 $ 24,450 Accruals 29,905 21,470 Notes payable 16,454 13,454 Total current liabilities $ 78,963 $ 59,374 Long-term debt 76,373 65,273 Total liabilities $ 155,336 $ 124,647 Common stock 105,000 95,000 Retained earnings 49,202 32,395 Total common equity $ 154,202 $ 127,395 Total liabilities and equity $ 309,538 $ 252,042 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-a84049.xlsx Sales for 2021 were $438,650,000, and EBITDA was 14% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $8,129,000, the corporate tax rate was 25%, and Laiho pays 47.25% 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. 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

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 $ 102,785 $ 89,530 Accounts receivable 103,454 85,552 Inventories 39,771 36,287 Total current assets $ 246,010 $ 211,369 Net fixed assets 63,528 40,673 Total assets $ 309,538 $ 252,042 Accounts payable $ 32,604 $ 24,450 Accruals 29,905 21,470 Notes payable 16,454 13,454 Total current liabilities $ 78,963 $ 59,374 Long-term debt 76,373 65,273 Total liabilities $ 155,336 $ 124,647 Common stock 105,000 95,000 Retained earnings 49,202 32,395 Total common equity $ 154,202 $ 127,395 Total liabilities and equity $ 309,538 $ 252,042 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-a84049.xlsx Sales for 2021 were $438,650,000, and EBITDA was 14% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $8,129,000, the corporate tax rate was 25%, and Laiho pays 47.25% 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. 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

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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Related questions

Question

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	$	102,785		$	89,530
Accounts receivable		103,454			85,552
Inventories		39,771			36,287
Total current assets	$	246,010		$	211,369
Net fixed assets		63,528			40,673
Total assets	$	309,538		$	252,042

Accounts payable	$	32,604		$	24,450
Accruals		29,905			21,470
Notes payable		16,454			13,454
Total current liabilities	$	78,963		$	59,374
Long-term debt		76,373			65,273
Total liabilities	$	155,336		$	124,647
Common stock		105,000			95,000
Retained earnings		49,202			32,395
Total common equity	$	154,202		$	127,395
Total liabilities and equity	$	309,538		$	252,042

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-a84049.xlsx

Sales for 2021 were $438,650,000, and EBITDA was 14% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $8,129,000, the corporate tax rate was 25%, and Laiho pays 47.25% 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.

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 (more, less, the same) corporate taxes and the company's shareholders would pay (more, less, the same) taxes on the dividends they would receive.
Assume that the firm's after-tax cost of capital is 11.5%. What is the firm's 2021 EVA?
Assume that the firm's stock price is $21 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?