Cumberland Industries' most recent balance sheets (in thousands of dollars) are shown, below and in the partial model in the file:

a. The company's sales for 2015 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation amounted to 11% of net fixed assets, interest charges were $8,575,000, the corporate tax rate was 40%, and Cumberland pays 40% of its net income out in dividends. Given this information, construct Cumberland's 2015 income statement.?

b. Next, construct the firm's statement of shareholders equity for the year ended December 31, 2015, and the 2015 statement of cash flows.

c. Calculate net operating working capital, total net operating capital, net operating profit after taxes, and free cash flow for 2015.

d. Calculate the firm's EVA and MVA for 2015. Assume that Cumberland had 10 million Shares outstanding, that the 2015 closing stock price was $17.25 per share, and that its after-tax cost of capital (W ACC) was 12%.

e. What will be the retained earnings for year 2015 if the tax rate is 30% and the pay out ratio is 35%? Make necessary changes in the balance sheet.

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2014 2015 $ 91,450 $ 74,625 Cash Short-term investments 11,400 15,100 Accounts receivable 103,365 85,527 Inventories 38,444 34,982 Total current assets 244,659 210,234 Net fixed assets 67,165 42,436 Total assets $311,824 $ 30,761 $252,670 $ 23,109 Accounts payable Accruals 30,477 22,656 Notes payable 16,717 14,217 Total current liabilities 59,982 77,955 Long-term debt 76,264 63,914 Total liabilities 154,219 123,896 Common stock 100,000 90,000 Retained earnings 38,774 57,605 Total common equity 128,774 157,605 $311,824 Total liabilities and equity $252,670