Ch 03: End-of-Chapter Problems - Financial Statements, Cash Flow, and Taxes X Attempts: Keep the Highest: /16 14. Problem 3.14 (Free Cash Flow) eBook Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 13,000 Accounts receivable 35,000 30,000 Inventories 31,380 Total current assets $ 81,380 $ 70,000 Net plant and equipment 49,000 47,000 Total assets $130,380 $117,000 27,000 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 $ 10,000 $ 9,000 7,100 5,000 6,000 5,250 $ 23,100 $ 19,250 10,000 10,000 $ 33,100 $ 29,250 60,000 60,000 37,280 27,750 $ 97,280 $ 87,750 $130,380 $117,000 Income Statement for Year Ending December 31, 2019 Sales $242,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 52,000 Depreciation & amortizati 7,000 EBIT $ 45,000 Interest 7,450 EBT $ 37,550 Taxes (25%) 9,387.50 Net income $ 28,162.50 Dividends paid 18,632.50 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 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. a. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2018$ million 2019 $ million b. What was Arlington's 2019 free cash flow? $ million c. Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019 Common Stock Retained Earnings Shares Amount Total Stockholders' Equity $ million Balances, 12/31/18 million $ million $ 2019 Net Income million million million Cash Dividends million Addition to retained earnings Balances, 12/31/19 million $ million $ million $ million d. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent. $ million e. What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25. Round your answer to the nearest cent. $ million