Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as...

      

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Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents $ 15,000 $ 13,000 Accounts receivable 35,000 30,000 Inventories 30,975 28,000 Total current assets $ 80,975 $ 71,000 Net plant and equipment 50,000 48,000 Total assets $130,975 $119,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Notes payable 6,500 5,450 Accruals 7,000 5,000 Total current liabilities $ 23,600 $ 19,450 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Notes payable 6,500 5,450 Accruals 7,000 5,000 $ 23,600 $ 19,450 Total current liabilities Long-term bonds 20,000 20,000 Total debt $ 43,600 $ 39,450 Common stock (4,000 shares) 60,000 60,000 Retained earnings 27,375 19,550 Common equity $ 87,375 $ 79,550 Total liabilities and equity $130,975 $119,000 Income Statement for Year Ending December 31, 2016 Sales $250,000 Operating costs excluding depreciation and amortization 200,000 EBITDA $ 50,000 Depreciation & amortization 5,000 EBIT $ 45,000 Interest 7,950 EBT $ 37.050 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Notes payable 6,500 5,450 Accruals 7,000 5,000 $ 23,600 $ 19,450 Total current liabilities Long-term bonds 20,000 20,000 Total debt $ 43,600 $ 39,450 Common stock (4,000 shares) 60,000 60,000 Retained earnings 27,375 19,550 Common equity $ 87,375 $ 79,550 Total liabilities and equity $130,975 $119,000 Income Statement for Year Ending December 31, 2016 Sales $250,000 Operating costs excluding depreciation and amortization 200,000 EBITDA $ 50,000 Depreciation & amortization 5,000 EBIT $ 45,000 Interest 7,950 EBT $ 37.050 Taxes (40%) 14,820 Net income $ 22,230 Dividends paid 14,405 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. a. What was net operating working capital for 2015 and 2016? 2015 $ 71,000 million 2016 $ 80,975 million b. What was Arlington's 2016 free cash flow? $4 million c. Construct Arlington's 2016 statement of stockholders' equity. Common Stock Retained Total Stockholders' Earnings Equity Shares Amount Balances, 12/31/15 million $ million million 24 million 2016 Net Income million Cash Dividends million Addition to retained earnings million Balances, 12/31/16 million %24 million 24 million 2$ million d. What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $ million e. What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $ million %24 Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents $ 15,000 $ 13,000 Accounts receivable 35,000 30,000 Inventories 30,975 28,000 Total current assets $ 80,975 $ 71,000 Net plant and equipment 50,000 48,000 Total assets $130,975 $119,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Notes payable 6,500 5,450 Accruals 7,000 5,000 Total current liabilities $ 23,600 $ 19,450 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Notes payable 6,500 5,450 Accruals 7,000 5,000 $ 23,600 $ 19,450 Total current liabilities Long-term bonds 20,000 20,000 Total debt $ 43,600 $ 39,450 Common stock (4,000 shares) 60,000 60,000 Retained earnings 27,375 19,550 Common equity $ 87,375 $ 79,550 Total liabilities and equity $130,975 $119,000 Income Statement for Year Ending December 31, 2016 Sales $250,000 Operating costs excluding depreciation and amortization 200,000 EBITDA $ 50,000 Depreciation & amortization 5,000 EBIT $ 45,000 Interest 7,950 EBT $ 37.050 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Notes payable 6,500 5,450 Accruals 7,000 5,000 $ 23,600 $ 19,450 Total current liabilities Long-term bonds 20,000 20,000 Total debt $ 43,600 $ 39,450 Common stock (4,000 shares) 60,000 60,000 Retained earnings 27,375 19,550 Common equity $ 87,375 $ 79,550 Total liabilities and equity $130,975 $119,000 Income Statement for Year Ending December 31, 2016 Sales $250,000 Operating costs excluding depreciation and amortization 200,000 EBITDA $ 50,000 Depreciation & amortization 5,000 EBIT $ 45,000 Interest 7,950 EBT $ 37.050 Taxes (40%) 14,820 Net income $ 22,230 Dividends paid 14,405 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. a. What was net operating working capital for 2015 and 2016? 2015 $ 71,000 million 2016 $ 80,975 million b. What was Arlington's 2016 free cash flow? $4 million c. Construct Arlington's 2016 statement of stockholders' equity. Common Stock Retained Total Stockholders' Earnings Equity Shares Amount Balances, 12/31/15 million $ million million 24 million 2016 Net Income million Cash Dividends million Addition to retained earnings million Balances, 12/31/16 million %24 million 24 million 2$ million d. What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places. $ million e. What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25. $ million %24

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