dont forget to answer with full work questions c. d. e.

137/ 866 3-14 FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2018 2017 $ 15,000 35,000 33,320 $ 83,320 48,000 $131,320 $ 14,000 30,000 27,000 $ 71,000 46,000 $ 117,000 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 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 $ 9,000 6,000 5,050 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 Income Statement for Year Ending December 31, 2018 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Dividends paid $210,000 160,000 $ 50,000 6,000 $ 44,000 5,350 $ 38,650 15,460 $ 23,190 $ 13.920 a. What was net operating working capital for 2017 and 2018? Assume that all cash is X.ROSShioniseasesinatuneeded for mennes $ 15,000 35,000 33,320 $ 83,320 48,000 $ 14,000 30,000 27,000 $ 71,000 46,000 $ 117,000 $131,320 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 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 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 $ 9,000 6,000 5,050 $ 20,050 20,000 40,000 46,220 $ 86,220 $131,320 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 Income Statement for Year Ending December 31, 2018 Sales $210,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $ 50,000 Depreciation and amortization *6,000 EBIT $ 44,000 Interest 5.350 EBT $ 38,650 Taxes (4096) 15,460 Net income S 23,190 Dividends paid $ 13,920 a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. b. What was Arlington's 2018 free cash flow? c. Construct Arlington's 2018 statement of stockholders' equity. 138 / 866 d. What was Arlington's 2018 EVA? Assume that its after-tax cost of capital is 10%. e. What was Arlington's MVA at year-end 2018? Assume that its stock price at December 31, 2018 was $25