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

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Bailey Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2015 2014 Assets $ 14,000 $ 13,000 Cash and equivalents 25,000 30,000 Accounts receivable 21,000 28,125 Inventories $ 59,000 $ 72,125 Total current assets 7,000 50,000 Net plant and equipment $106,000 $122,125 Total assets Liabilities and Equity $ 9,000 $ 10,800 Accounts payable 6,000 7,600 Accruals 6,700 5,150 Notes payable $ 20,150 $ 25,100 Total current liabilities 15,000 15,000 Long-term bonds $ 35,150 $ 40,100 Total liabilities 50,000 Common stock (5,000 shares) 50,000 20,850 Retained earnings 32,025 $ 70,850 $ 82,025 Common equity $122,125 $106,000 Total liabilities and equity Income Statement for Year Ending December 31, 2015 Sales $214,000 Operating costs excluding depreciation and amortization 170,000 $ 44,000 EBITDA Depreciation & amortization 5,000 $ 39,000 EBIT Interest 1,750 $ 37,250 EBT Taxes (40%) 14,900 Net income $ 22,350 Dividends paid $ 11,175 What was net operating working capital for 2014 and 2015? b. What was Bailey's 2015 free cash flow? Construct Bailey's 2015 statement of stockholders' equity. d. What was Bailey's 2015 EVA? Assume that its after-tax cost of capital is 10%. What was Bailey's MVA at year-end 2015? Assume that its stock price at December 31, 2015 was $20. a. C. e. Bailey Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2015 2014 Assets $ 14,000 $ 13,000 Cash and equivalents 25,000 30,000 Accounts receivable 21,000 28,125 Inventories $ 59,000 $ 72,125 Total current assets 7,000 50,000 Net plant and equipment $106,000 $122,125 Total assets Liabilities and Equity $ 9,000 $ 10,800 Accounts payable 6,000 7,600 Accruals 6,700 5,150 Notes payable $ 20,150 $ 25,100 Total current liabilities 15,000 15,000 Long-term bonds $ 35,150 $ 40,100 Total liabilities 50,000 Common stock (5,000 shares) 50,000 20,850 Retained earnings 32,025 $ 70,850 $ 82,025 Common equity $122,125 $106,000 Total liabilities and equity Income Statement for Year Ending December 31, 2015 Sales $214,000 Operating costs excluding depreciation and amortization 170,000 $ 44,000 EBITDA Depreciation & amortization 5,000 $ 39,000 EBIT Interest 1,750 $ 37,250 EBT Taxes (40%) 14,900 Net income $ 22,350 Dividends paid $ 11,175 What was net operating working capital for 2014 and 2015? b. What was Bailey's 2015 free cash flow? Construct Bailey's 2015 statement of stockholders' equity. d. What was Bailey's 2015 EVA? Assume that its after-tax cost of capital is 10%. What was Bailey's MVA at year-end 2015? Assume that its stock price at December 31, 2015 was $20. a. C. e.

Answer rating: 100% (QA)

Bailey Corporations financial statements dollars and shares are in millions are provided here Balance Sheet as of December 31 2015 2014 Assets Cash an... View the full answer