Net Income Dividends pald Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. a. What was net operating working capital for 2020 and 2021? Assume that all cash is excess cash; I.e., this cash is not needed for operating purposes. 43,000 million 51,790 million 2020$ 2021$ b. What was Arlington's 2021 free cash flow? 26,900 million c. Construct Arlington's 2021 statement of stockholders' equity. $ Balances, 12/31/20 2021 Net Income $29,512.50 $18,872.50 Shares $ Statement of Stockholders' Equity, 2021 Common Stock million $ Amount million $ Retained Earnings Total Stockholders' Equity million $ million million Cash Dividends Addition to retained earnings Balances, 12/31/21 million $ 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. million million million $ 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. 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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Do my A, B & C answers Look Correct? Could you Help me with C, D & E?

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.
Balance Sheets as of December 31
Assets
Cash and equivalents
Accounts receivable
Inventories
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 llabilities and equity
Sales
Operating costs excluding depreciation and amortization
EBITDA
Depreciation & amortization
EBIT
Interest
EBT
Taxes (25%)
Net Income
Dividends pald
Balances, 12/31/20
2021 Net Income
Income Statement for Year Ending December 31, 2021
Cash Dividends
Addition to retained earnings
Balances, 12/31/21
2021
$ 15,000
35,000
34,190
$
$ 84,190
48,000
$132,190
2020$
2021$
b. What was Arlington's 2021 free cash flow?
$
26,900 million
c. Construct Arlington's 2021 statement of stockholders' equity.
Shares
$ 10,100
7,300
6,200
million
$ 23,600
15,000
$ 38,600
60,000
33,590
$ 93,590
$132,190
2020
$ 13,000
30,000
28,000
$
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.
43,000 million
51,790 million
71,000
47,000
$118,000
million $
$ 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
Statement of Stockholders' Equity, 2021
Common Stock
Amount
million $
Retained
Earnings
million $
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.
million
million
million
Total Stockholders'
Equity
$
$
million
$
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.
million
million
Transcribed Image Text:Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 Assets Cash and equivalents Accounts receivable Inventories 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 llabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation & amortization EBIT Interest EBT Taxes (25%) Net Income Dividends pald Balances, 12/31/20 2021 Net Income Income Statement for Year Ending December 31, 2021 Cash Dividends Addition to retained earnings Balances, 12/31/21 2021 $ 15,000 35,000 34,190 $ $ 84,190 48,000 $132,190 2020$ 2021$ b. What was Arlington's 2021 free cash flow? $ 26,900 million c. Construct Arlington's 2021 statement of stockholders' equity. Shares $ 10,100 7,300 6,200 million $ 23,600 15,000 $ 38,600 60,000 33,590 $ 93,590 $132,190 2020 $ 13,000 30,000 28,000 $ 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. 43,000 million 51,790 million 71,000 47,000 $118,000 million $ $ 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 Statement of Stockholders' Equity, 2021 Common Stock Amount million $ Retained Earnings million $ 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. million million million Total Stockholders' Equity $ $ million $ 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. million million
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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
million
million
million
million
Total Stockholders'
Equity
$
$
million
million
million
Transcribed Image Text: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 million million million million Total Stockholders' Equity $ $ million million million
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