a. Using the financial statements shown below for Lan & Chen Technologies, calculate net Cash Flows, EVA, operating working capital, total net operating capital, net operating profit after taxes, and MVA free cash flow, and return on invested capital for 2016. 

b. Assume there were 15 million shares outstanding at the end of 2016, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for 2016. 

Lan & Chen Technologies: Income Statements far Year Ended December 31 (Thousands of Dollars)

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2016 2015 $945,000 Sales $900,000 Expenses excluding depreciation and amortization 774,000 812,700 EBITDA 132,300 126,000 Depreciation and amortization 33,100 31,500 EBIT 99,200 94,500 Interest expense 10,470 8,600 Pre-tax earnings $ 88,730 $ 85,900 Taxes (40%) 35,492 34,360 $ 53,238 $ 43,300 $ 51,540 $ 41,230 Net income Common dividends Addition to retained earnings $ 9,938 $ 10,310 Lan & Chen Technologies: December 31 Balance Sheets 2016 2015 Assets Cash and cash equivalents $ 47,250 $ 45,000 Short-term investments 3,800 3,600 Accounts receivable 283,500 270,000 141,750 Inventories 135,000 $476,300 $453,600 Total current assets Net fixed assets 330,750 315,000 Total assets $807,050 $768,600 Liabilities and Equity $ 94,500 Accounts payable $ 90,000 47,250 Accruals 45,000 Notes payable 9,000 26,262 Total current liabilities $168,012 $144,000 Long-term debt 94,500 90,000 Total liabilities $234,000 $262,512 444,600 444,600 Common stock Retained earnings 99,938 $544,538 $807,050 90,000 Total common equity Total liabilities and equity $534,600 $768,600