Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Shoats as of December 31 2018 2017 Assets Cash and equivalonts $ 15,000 $ 14,000 Accounts recalvable 35,000 30,000 Inventories 33,320 27,000 Total current assots $ 83320 $ 71,000 Nat plant and equipment 48,000 46,000 Total assets $131,320 $117,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Accruals R000 6,000 Notes payable 7,000 5,050 Total current labilities $ 25,100 $ 20,050 Long term bonds 20,000 20,000 Total labilnies $ 45,100 $ 40,050 Common stock (4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 Common oquity $ 86,220 $ 76,950 Total labilites and equity $131,320 $117,000 Income Statement for Year Ending Decomber 31, 2018 Sales $210,000 Operating costs excluding depredation andamortzation 160,000 EBITDA $ 50,000 Depraciation and amortization 6,000 $ 44,000 5,350 $ 38,650 EBIT Interast EBT Taxes (40%) 15,460 Not income $ 23,190 Dividends paid $ 13,920 a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; ie, this canh is not needed for operating purposes b. What was Arlington's 2018 free cash flow? c. Canstruct Arlington's 2018 statement of stockholders' equity.
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Shoats as of December 31 2018 2017 Assets Cash and equivalonts $ 15,000 $ 14,000 Accounts recalvable 35,000 30,000 Inventories 33,320 27,000 Total current assots $ 83320 $ 71,000 Nat plant and equipment 48,000 46,000 Total assets $131,320 $117,000 Liabilities and Equity Accounts payable $ 10,100 $ 9,000 Accruals R000 6,000 Notes payable 7,000 5,050 Total current labilities $ 25,100 $ 20,050 Long term bonds 20,000 20,000 Total labilnies $ 45,100 $ 40,050 Common stock (4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 Common oquity $ 86,220 $ 76,950 Total labilites and equity $131,320 $117,000 Income Statement for Year Ending Decomber 31, 2018 Sales $210,000 Operating costs excluding depredation andamortzation 160,000 EBITDA $ 50,000 Depraciation and amortization 6,000 $ 44,000 5,350 $ 38,650 EBIT Interast EBT Taxes (40%) 15,460 Not income $ 23,190 Dividends paid $ 13,920 a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; ie, this canh is not needed for operating purposes b. What was Arlington's 2018 free cash flow? c. Canstruct Arlington's 2018 statement of stockholders' equity.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.14P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Transcribed Image Text:Arlington Corporation's financial statements (dollars and shares are in
millions) are provided here.
Balance Shoats as of December 31
2018
2017
Assets
Cash and equivalonts
$ 15,000
$ 14,000
Accounts recalvable
35,000
30,000
Inventories
33,320
27,000
Total current assots
$ 83320
$ 71,000
Nat plant and equipment
48,000
46,000
Total assets
$131,320
$117,000
Liabilities and Equity
Accounts payable
$ 10,100
$ 9,000
Accruals
R000
6,000
Notes payable
7,000
5,050
Total current labilities
$ 25,100
$ 20,050
Long term bonds
20,000
20,000
Total labilnies
$ 45,100
$ 40,050
Common stock (4,000 shares)
40,000
40,000
Retained earnings
46,220
36,950
Common oquity
$ 86,220
$ 76,950
Total labilites and equity
$131,320
$117,000
Income Statement for Year Ending Decomber 31, 2018
Sales
$210,000
Operating costs excluding depredation andamortzation
160,000
EBITDA
$ 50,000
Depraciation and amortization
6,000
$ 44,000
5,350
$ 38,650
EBIT
Interast
EBT
Taxes (40%)
15,460
Not income
$ 23,190
Dividends paid
$ 13,920
a. What was net operating working capital for 2017 and 2018? Assume that all cash is
excess cash; ie, this canh is not needed for operating purposes
b. What was Arlington's 2018 free cash flow?
c. Canstruct Arlington's 2018 statement of stockholders' equity.
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