Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31   2019   2018 Assets   Cash and equivalents $  15,000   $  14,000 Accounts receivable 35,000   30,000 Inventories 31,920   27,000   Total current assets $ 81,920   $ 71,000 Net plant and equipment 48,000   47,000 Total assets $129,920   $118,000   Liabilities and Equity   Accounts payable $ 11,000   $  9,000 Accruals 7,100   5,000 Notes payable 6,500   5,150   Total current liabilities $  24,600   $  19,150 Long-term bonds 10,000   10,000   Total liabilities $  34,600   $  29,150 Common stock (4,000 shares) 40,000   40,000 Retained earnings 55,320   48,850   Common equity $ 95,320   $ 88,850 Total liabilities and equity $129,920   $118,000   Income Statement for Year Ending December 31, 2019 Sales $241,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 51,000 Depreciation & amortization 7,000 EBIT $ 44,000 Interest 5,000 EBT $ 39,000 Taxes (25%) 9,750.00 Net income $ 29,250.00 Dividends paid 22,780.00   Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2018 $    million 2019 $    million What was Arlington's 2019 free cash flow? $    million Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019   Common Stock RetainedEarnings Total Stockholders'Equity Shares Amount Balances, 12/31/18   million $    million $    million $    million 2019 Net Income     million   Cash Dividends     million   Addition to retained earnings       million Balances, 12/31/19   million $    million $    million $    million What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent. $    million What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25. Round your answer to the nearest cent. $    million

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Chapter9: Long-term Liabilities
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Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...
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Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.

Balance Sheets as of December 31
  2019   2018
Assets  
Cash and equivalents $  15,000   $  14,000
Accounts receivable 35,000   30,000
Inventories 31,920   27,000
  Total current assets $ 81,920   $ 71,000
Net plant and equipment 48,000   47,000
Total assets $129,920   $118,000
 
Liabilities and Equity  
Accounts payable $ 11,000   $  9,000
Accruals 7,100   5,000
Notes payable 6,500   5,150
  Total current liabilities $  24,600   $  19,150
Long-term bonds 10,000   10,000
  Total liabilities $  34,600   $  29,150
Common stock (4,000 shares) 40,000   40,000
Retained earnings 55,320   48,850
  Common equity $ 95,320   $ 88,850
Total liabilities and equity $129,920   $118,000

 

Income Statement for Year Ending December 31, 2019
Sales $241,000
Operating costs excluding depreciation and amortization 190,000
EBITDA $ 51,000
Depreciation & amortization 7,000
EBIT $ 44,000
Interest 5,000
EBT $ 39,000
Taxes (25%) 9,750.00
Net income $ 29,250.00
Dividends paid 22,780.00

 

Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary.

  1. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.

    2018 $    million
    2019 $    million
  2. What was Arlington's 2019 free cash flow?

    $    million

  3. Construct Arlington's 2019 statement of stockholders' equity.

    Statement of Stockholders' Equity, 2019
      Common Stock Retained
    Earnings
    Total Stockholders'
    Equity
    Shares Amount
    Balances, 12/31/18   million $    million $    million $    million
    2019 Net Income     million  
    Cash Dividends     million  
    Addition to retained earnings       million
    Balances, 12/31/19   million $    million $    million $    million
  4. What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent.

    $    million

  5. What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25. Round your answer to the nearest cent.

    $    million

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