Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35.000 30,000 Inventories 31.120 27,000 Total current assets S B1,320 $ 71,000 Net plant and equipment 48.000 46,000 Total assets S131.320 S117.000 Liabilities and Equity Accounts payable $ 1,100 $ 9.000 Accruals 8,000 6.000 Notes payable 7,000 5.050 Total current liabilities $ 25,100 $ 20,050 Long-term bonds 20,000 20,000 $ 45,100 $ 40,050 Total labilities Common stock (4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 $ 86,220 S 76,950 $ 117,000 Common equity Total liabilities and equity $131,320 Income Statement for Year Ending December 31, 2019 Sales $210.000 160.000 $ 5000 Operating costs excluding depreciation and amortization EBITDA 6.000 $ 44,000 Depreciation and amortization EBIT Interest 5.350 EBT $ 38650 Taxes (25%) 9,663 $ 28.988 $ 19.718 Net income Dividends paid
Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 35.000 30,000 Inventories 31.120 27,000 Total current assets S B1,320 $ 71,000 Net plant and equipment 48.000 46,000 Total assets S131.320 S117.000 Liabilities and Equity Accounts payable $ 1,100 $ 9.000 Accruals 8,000 6.000 Notes payable 7,000 5.050 Total current liabilities $ 25,100 $ 20,050 Long-term bonds 20,000 20,000 $ 45,100 $ 40,050 Total labilities Common stock (4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 $ 86,220 S 76,950 $ 117,000 Common equity Total liabilities and equity $131,320 Income Statement for Year Ending December 31, 2019 Sales $210.000 160.000 $ 5000 Operating costs excluding depreciation and amortization EBITDA 6.000 $ 44,000 Depreciation and amortization EBIT Interest 5.350 EBT $ 38650 Taxes (25%) 9,663 $ 28.988 $ 19.718 Net income Dividends paid
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
a. What was net operating working capital for 2018 and 2019?
Assume that all cash is excess cash; i.e., this cash is not needed for
operating purposes.
b. What was Arlington's 2019 free cash flow?
c. Construct Arlington's 2019 statement of stockholders' equity.
d. What was Arlington's 2019 EVA? Assume that its after-tax cost of
capital is 10%.
e. What was Arlington's MVA at year-end 2019? Assume that its
stock price at December 31, 2019 was $25.
Transcribed Image Text:Balance Sheets as of December 31
2019
2018
Assets
Cash and equivalents
$ 15,000
$ 14,000
Accounts receivable
35.000
30,000
Inventories
31.120
27,000
Total current assets
S B1,320
$ 71,000
Net plant and equipment
48.000
46,000
Total assets
S131.320
S117.000
Liabilities and Equity
Accounts payable
$ 1,100
$ 9.000
Accruals
8,000
6.000
Notes payable
7,000
5.050
Total current liabilities
$ 25,100
$ 20,050
Long-term bonds
20,000
20,000
$ 45,100
$ 40,050
Total labilities
Common stock (4,000 shares)
40,000
40,000
Retained earnings
46,220
36,950
$ 86,220
S 76,950
$ 117,000
Common equity
Total liabilities and equity
$131,320
Income Statement for Year Ending December 31, 2019
Sales
$210.000
160.000
$ 5000
Operating costs excluding depreciation and amortization
EBITDA
6.000
$ 44,000
Depreciation and amortization
EBIT
Interest
5.350
EBT
$ 38650
Taxes (25%)
9,663
$ 28.988
$ 19.718
Net income
Dividends paid
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