$3-$ End$-$of$-$Chapter Problems $-$ Financial Statements, Cash Flow, and Taxes

eBook

lington Corporation's financial statements $($dollars and shares are in millions$)$ are provided here.

Balance Sheets as of December $31$

$20212020$

ssets

ash and equivalents

ccounts receivable

nventories

Total current assets

Net plant and equipment

Total assets

$\backslash$table$[[$$ $14,000,$$ $12,000],[30,000,25,000],[27,165,21,000],[$$ $71,165,$$ $58,000],[51,000,49,000],[$$$122,165,$$$107,000]]$

Liabilities and Equity

Accounts payable

Accruals

Notes payable

Total current liabilities

Long$-$term bonds

Total liabilities

Common stock $(4,000$ shares$)$

Retained earnings

Common equity

Total liabilities and equity

Income Statement for Year Ending December $31,2021$

Sales

Operating costs excluding depreciation and amortization

EBITDA

Depreciation & amortization

EBIT

Interest

EBT

Taxes $(25\%)$

Net income

Dividends paid

$\backslash$table$[[$$$226,000$

Enter your answers in millions. For example, an answer of $$25,000,000,000$ should be entered as $25,000.$ Round your answers to the nearest whole number, if necessary.

a$.$ What was net operating working capital for $2020$ and $2021?$ Assume that all cash is excess cash; i$.$e$.,$ this cash is not needed for operating purposes.

$2020$$ $$ million

$2021$$ $$ million

b$.$ What was Arlington's $2021$ free cash flow?

$ $$ million

c$.$ Construct Arlington's $2021$ statement of stockholders' equity.

$ $$ million

e$.$ What was Arlington's MVA at year$-$end $2021?$ Assume that its stock price at December $31,2021$ was $$25.$ Round your answer to the nearest cent.

$ $$ million