a. Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year.
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Lan & Chen Technologies: Income Statements for Year Ending December 31
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(Thousands of Dollars)
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2013
|
2012
|
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Sales
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$945,000
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$900,000
|
|
Expenses excluding depreciation and amortization
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812,700
|
774,000
|
|
EBITDA
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$132,300
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$126,000
|
|
Depreciation and amortization
|
33,100
|
31,500
|
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EBIT
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$99,200
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$94,500
|
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Interest Expense
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10,470
|
8,600
|
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EBT
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$88,730
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$85,900
|
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Taxes (40%)
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35,492
|
34,360
|
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Net income
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$53,238
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$51,540
|
|
|
|
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Common dividends
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$43,300
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$41,230
|
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Addition to retained earnings
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$9,938
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$10,310
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|
|
|
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Lan & Chen Technologies: December 31 Balance Sheets
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(Thousands of Dollars)
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|
|
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Assets
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2013
|
2012
|
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Cash and cash equivalents
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$47,250
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$45,000
|
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Short-term investments
|
3,800
|
3,600
|
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Accounts Receivable
|
283,500
|
270,000
|
|
Inventories
|
141,750
|
135,000
|
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Total current assets
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$476,300
|
$453,600
|
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Net fixed assets
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330,750
|
315,000
|
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Total assets
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$807,050
|
$768,600
|
|
|
|
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Liabilities and equity
|
|
|
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Accounts payable
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$94,500
|
$90,000
|
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Accruals
|
47,250
|
45,000
|
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Notes payable
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26,262
|
9,000
|
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Total current liabilities
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$168,012
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$144,000
|
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Long-term debt
|
94,500
|
90,000
|
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Total liabilities
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$262,512
|
$234,000
|
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Common stock
|
444,600
|
444,600
|
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Retained Earnings
|
99,938
|
90,000
|
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Total common equity
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$544,538
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$534,600
|
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Total liabilities and equity
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$807,050
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$768,600
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b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent year.
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Additional Input Data
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Stock price per share
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$65.00
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# of shares (in thousands)
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15,000
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After-tax cost of capital
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8.0%
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Attachment:- Assignment.rar