Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding Price WACC 2017 Show All Feedback $2,000 1,250 $750 100 $650 62 $588 235 $353 $53 $300 110 $22.73 11.00% 2016 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 110 $20.23 Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollar. Do not round Intermediate calculations. 575 G Show All Feedback Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations. $128.75 O Check My Work (No more tries available

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PA: The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows: The...
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Please help! Cannot seem to get the correct answer for the second question regarding EVA. Will upvote! Thank you!!


 
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset.
Balance Sheets:
Cash and equivalents
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
2017
$100
275
375
$750
2,000
$2,750
$150
75
150
$375
450
1,225
700
$2,750
2016
$85
200
250
$635
1,490
$2,125
$85
50
75
$210
290
1,225
400
$2,125
Transcribed Image Text:Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 2017 $100 275 375 $750 2,000 $2,750 $150 75 150 $375 450 1,225 700 $2,750 2016 $85 200 250 $635 1,490 $2,125 $85 50 75 $210 290 1,225 400 $2,125
Sales
Operating costs excluding depreciation
EBITDA
Depreciation and amortization
EBIT
Interest
EBT
Taxes (40%)
Net income
Income Statements:
Dividends paid:
Addition to retained earnings
Shares outstanding
Price
WACC
2017
Show All Feedback
$2,000
1,250
$750
100
$650
62
$588
235
$353
$53
$300
110
$22.73
11.00%
2016
$1,500
1,000
$500
75
$425
45
$380
152
$228
$48
$180
110
$20.23
Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollar. Do not round Intermediate calculations.
575
G
Show All Feedback
Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations.
$128.75
Check My Work (No more tries available
Transcribed Image Text:Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Income Statements: Dividends paid: Addition to retained earnings Shares outstanding Price WACC 2017 Show All Feedback $2,000 1,250 $750 100 $650 62 $588 235 $353 $53 $300 110 $22.73 11.00% 2016 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 110 $20.23 Using the financial statements above, what is Rosnan's 2017 market value added (MVA)? Round your answer to the nearest dollar. Do not round Intermediate calculations. 575 G Show All Feedback Using the financial statements given earlier, what is Rosnan's 2017 economic value added (EVA)? Round your answer to the nearest cent. Do not round intermediate calculations. $128.75 Check My Work (No more tries available
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