show all work and formulas please

do not worry about the " how we did in class" part

Finance 410: HW 4 Print Name Spring 2021 Due Monday, March 8, 2021 at the beginning of class.. Instructions: Show all of your work for maximum credit. There are 40 points possible. 1. Use the financial statements (on back of handout) for Springhill Industrial. a) (30 points) Calculate the free cash flow from both an operating and financing perspective (using the same format as in class) for Springhill Industrial for 2020. b) (5 points) Calculate the return on invested capital for Springhill for 2020. If the WACC is 9%, is the company creating value for shareholders? c) (5 points) Calculate the economic value added for the 2020 year. HW sp 2021 Springhill Industrial Financial Statements 2020 2019 $ $ $ $ $ Balance Sheet Cash Short term investments Accounts Receivable Inventories Total Current Assets Equipment machinery etc. Buildings etc less allowance for depreciation Net fixed Assets Total Assets Accounts Payable Notes Payable accruals Total Current liabilities Long-term debt Common Stock Retained Earnings Total common equity Total Liabilities and Equity 15,200.00 $ 22,000.00 $ 673.000.00 $ 1.476.48000 $ 2186 680.00 $ 579,062 00 $ 702 950.00 $ 373.160.00 $ 908.852.00 $ 3.095.532.00 $ 7.182.00 18,000 00 632 160.00 1.287 360 00 1.942.702 00 498,000.00 702,950.00 263,100.00 937.790.00 2.880.492.00 $ $ $ $ 5 s 379 000.00 5 319,000.00 400,000.00 $ 419,000.00 380,300.00 $ 286,860.00 1.159,300.00 $ 1,024,860.00 1 265,000.00 $ 1,300,000.00 460.000.00 $ 458,000.00 211.232.00 $ 97 632.00 671.232.00 $ 555,632.00 3,095,532.00 2.880.492.00 $ 6.620.000,00 5.418,000.00 5 1202.00000 S 5,836,400.00 4.724,000.00 1.112.400.00 Income Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Fixed Cash op. Expense Variable op. Expense Depreciation Total operating expense Earnings before Interest and Taxes Interest Earnings before Taxes Taxes (40%) Net Income $ $ $ $ $ $ 347.000.00 $ 317,000.00 $ 110,000.00 $ 774,000.00 428.000.00 $ 142.000.00 $ 288 000.00 $ 114 400.00 $ 171.500.00 $ 342,000.00 278,000.00 116.960.00 734 000.00 377 440.00 172.000.00 205,440.00 82.176.00 123.254.00 Finance 410: HW 4 Print Name Spring 2021 Due Monday, March 8, 2021 at the beginning of class.. Instructions: Show all of your work for maximum credit. There are 40 points possible. 1. Use the financial statements (on back of handout) for Springhill Industrial. a) (30 points) Calculate the free cash flow from both an operating and financing perspective (using the same format as in class) for Springhill Industrial for 2020. b) (5 points) Calculate the return on invested capital for Springhill for 2020. If the WACC is 9%, is the company creating value for shareholders? c) (5 points) Calculate the economic value added for the 2020 year. HW sp 2021 Springhill Industrial Financial Statements 2020 2019 $ $ $ $ $ Balance Sheet Cash Short term investments Accounts Receivable Inventories Total Current Assets Equipment machinery etc. Buildings etc less allowance for depreciation Net fixed Assets Total Assets Accounts Payable Notes Payable accruals Total Current liabilities Long-term debt Common Stock Retained Earnings Total common equity Total Liabilities and Equity 15,200.00 $ 22,000.00 $ 673.000.00 $ 1.476.48000 $ 2186 680.00 $ 579,062 00 $ 702 950.00 $ 373.160.00 $ 908.852.00 $ 3.095.532.00 $ 7.182.00 18,000 00 632 160.00 1.287 360 00 1.942.702 00 498,000.00 702,950.00 263,100.00 937.790.00 2.880.492.00 $ $ $ $ 5 s 379 000.00 5 319,000.00 400,000.00 $ 419,000.00 380,300.00 $ 286,860.00 1.159,300.00 $ 1,024,860.00 1 265,000.00 $ 1,300,000.00 460.000.00 $ 458,000.00 211.232.00 $ 97 632.00 671.232.00 $ 555,632.00 3,095,532.00 2.880.492.00 $ 6.620.000,00 5.418,000.00 5 1202.00000 S 5,836,400.00 4.724,000.00 1.112.400.00 Income Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Fixed Cash op. Expense Variable op. Expense Depreciation Total operating expense Earnings before Interest and Taxes Interest Earnings before Taxes Taxes (40%) Net Income $ $ $ $ $ $ 347.000.00 $ 317,000.00 $ 110,000.00 $ 774,000.00 428.000.00 $ 142.000.00 $ 288 000.00 $ 114 400.00 $ 171.500.00 $ 342,000.00 278,000.00 116.960.00 734 000.00 377 440.00 172.000.00 205,440.00 82.176.00 123.254.00