a. Using the financial statements shown below for Lan & Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2015.

b. Assume there were 15 million shares outstanding at the end of 2015, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for 2015.

Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars)

Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)

Transcribed Image Text:

945,000 $900,000 312700 , 774000 132,300 $126,000 33100 31500 99,200 94,500 Expenses excluding depreciation and amortization nterest expense Pre-tax earning Taxes (40%) 88,730 85,900 Net income 53,238 51,540 Common dividends S 43,300 41,230 S 9,938 10,310 Addition to retained earnings Cash and cash equivalents Accounts receivable 2 Total current assets Net fixed assets Liabilities and Equity Total current liabilities Total liabilities $544538 $534,600 Total liabilities and equity