Question 1 (9 points) Saved millions) are provided here. Balance Sheets as of December 31 2016 2015 $ 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 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 Income Statement for Year Ending December 31, 2016 Total liabilities and equity 2 $131,320 $ 117,000 Income Statement for Year Ending December 31, 2016 Sales $210,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $ 50,000 Depreciation & amortization 6,000 EBIT $ 44,000 Interest 5,350 EBT $ 38,650 Taxes (40%) 15,460 Net income Dividends paid $ 23,190 $ 13,920 a. What was net operating working capital for 2015 and 2016? b. What was Arlington's 2016 free cash flow? c. Construct Arlington's 2016 statement of stockholders' equity. d. What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. e. What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016, was $25. Fill in your answers in the first ROW first, then the second Row and the 1 2. A/ A/ 2 Round your answers to two decimal places. A/ For year-end 2016: What is the quick ratio? What is the inventory turnover ratio? What is the days sales outstanding ratio? What is the total debt to total capital ratio? State as a percent, such as 12.34, but don't use the percent symbol. What is the ROE? State as a percent, but don't use the percent symbol. A/ A/ Question 2 (5 points) Saved How many years do you have to deposit $1000 into a 5% savings account in order to accumulate $1 million? All payments are made att 2 Fill in your answers in the first ROW first, then the second ROW and then the third ROW. Go from left to right in each row in filling in your answers, i.e., finish ROW 1 before you move to ROW 2 and finish ROW 2 before you move to Row 3. For year-end 2016: What is the net working capital? What is the free cash flow? Assuming a 10% after-tax cost of capital, what is the EVA? Assuming a $25 stock price, what is the P/E ratio? Round your answer to two decimal places. AJ AJ I A/ Round your answers to two decimal places. For year-end 2016: What is the quick ratio? What is the inventory turnover ratio? What is the days sales outstanding ratio? Question 1 (9 points) Saved millions) are provided here. Balance Sheets as of December 31 2016 2015 $ 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 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 Income Statement for Year Ending December 31, 2016 Total liabilities and equity 2 $131,320 $ 117,000 Income Statement for Year Ending December 31, 2016 Sales $210,000 Operating costs excluding depreciation and amortization 160,000 EBITDA $ 50,000 Depreciation & amortization 6,000 EBIT $ 44,000 Interest 5,350 EBT $ 38,650 Taxes (40%) 15,460 Net income Dividends paid $ 23,190 $ 13,920 a. What was net operating working capital for 2015 and 2016? b. What was Arlington's 2016 free cash flow? c. Construct Arlington's 2016 statement of stockholders' equity. d. What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. e. What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016, was $25. Fill in your answers in the first ROW first, then the second Row and the 1 2. A/ A/ 2 Round your answers to two decimal places. A/ For year-end 2016: What is the quick ratio? What is the inventory turnover ratio? What is the days sales outstanding ratio? What is the total debt to total capital ratio? State as a percent, such as 12.34, but don't use the percent symbol. What is the ROE? State as a percent, but don't use the percent symbol. A/ A/ Question 2 (5 points) Saved How many years do you have to deposit $1000 into a 5% savings account in order to accumulate $1 million? All payments are made att 2 Fill in your answers in the first ROW first, then the second ROW and then the third ROW. Go from left to right in each row in filling in your answers, i.e., finish ROW 1 before you move to ROW 2 and finish ROW 2 before you move to Row 3. For year-end 2016: What is the net working capital? What is the free cash flow? Assuming a 10% after-tax cost of capital, what is the EVA? Assuming a $25 stock price, what is the P/E ratio? Round your answer to two decimal places. AJ AJ I A/ Round your answers to two decimal places. For year-end 2016: What is the quick ratio? What is the inventory turnover ratio? What is the days sales outstanding ratio