Lan & Chen Technologies: Income Statements for Year Ending December 31
(Thousands of Dollars)						2017		2016
Sales						$950,000		$900,000
Expenses excluding depreciation and amortization					812,700		774,000
EBITDA						$137,300		$126,000
Depreciation and amortization					32,300		31,500
EBIT						$105,000		$94,500
Interest Expense						10,470		10,450
EBT						$94,530		$84,050
Taxes (40%)						37,812		34,360
Net income						$56,718		$49,690
Common dividends						$43,488		$41,230
Addition to retained earnings						$13,230		$8,460
Lan & Chen Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets						2017		2016
Cash and cash equivalents						$48,000		$45,000
Short-term investments						3,800		3,600
Accounts Receivable						283,500		270,000
Inventories						143,000		135,000
Total current assets						$478,300		$453,600
Net fixed assets						332,042		315,000
Total assets						$810,342		$768,600
Liabilities and equity
Accounts payable						$94,500		$90,000
Accruals						47,250		45,000
Notes payable						26,262		9,000
Total current liabilities						$168,012		$144,000
Long-term debt						94,500		90,000
Total liabilities						$262,512		$234,000
Common stock						444,600		444,600
Retained Earnings						103,230		90,000
Total common equity						$547,830		$534,600
Total liabilities and equity						$810,342		$768,600

a. Using the financial statements shown above for Lan and Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2017.

b. Assume there were 14 million shares outstanding at the end of 2017, the year-end closing stock price was $69 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for 2017.