Excel Activity: Financial Statements, Cash Flow, and Taxes Laiho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown.   Laiho Industries: Balance Sheets as of December 31 (thousands of dollars)   2021   2020   Cash $ 106,278   $ 91,660   Accounts receivable   103,347     85,164   Inventories   38,965     35,757      Total current assets $ 248,590   $ 212,581   Net fixed assets   67,963     42,749   Total assets $ 316,553   $ 255,330                 Accounts payable $ 30,151   $ 22,600   Accruals   31,711     24,202   Notes payable   17,606     14,626      Total current liabilities $ 79,468   $ 61,428   Long-term debt   77,320     64,070      Total liabilities $ 156,788   $ 125,498   Common stock   100,500     88,000   Retained earnings   59,265     41,832      Total common equity $ 159,765   $ 129,832   Total liabilities and equity $ 316,553   $ 255,330     The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any.     Download spreadsheet Financial Statements, Cash Flow, and Taxes-db38b3.xlsx   Sales for 2021 were $432,650,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $7,748,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement.   Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars)   2021 Sales $  fill in the blank 2    Operating costs excluding depreciation and amortization fill in the blank 3 EBITDA $  fill in the blank 4    Depreciation and amortization fill in the blank 5 EBIT $  fill in the blank 6    Interest fill in the blank 7 EBT $  fill in the blank 8    Taxes (25%) fill in the blank 9 Net income $  fill in the blank 10     Common dividends $  fill in the blank 11 Addition to retained earnings $  fill in the blank 12   Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year.   Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars)   Common Stock Retained Earnings Total Stockholders' Equity Balances, December 31, 2020   $  fill in the blank 13     $  fill in the blank 14     $  fill in the blank 15   Common stock issue   fill in the blank 16           fill in the blank 17   2021 Net income         fill in the blank 18         Cash dividends         fill in the blank 19         Addition to retained earnings               fill in the blank 20   Balances, December 31, 2021   $  fill in the blank 21     $  fill in the blank 22     $  fill in the blank 23       Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars)   2021 Operating Activities   Net income $  fill in the blank 24 Depreciation and amortization fill in the blank 25 Increase in accounts payable fill in the blank 26 Increase in accruals fill in the blank 27 Increase in accounts receivable fill in the blank 28 Increase in inventories fill in the blank 29    Net cash provided by operating activities $  fill in the blank 30 Investing Activities   Additions to property, plant, and equipment $  fill in the blank 31    Net cash used in investing activities $  fill in the blank 32 Financing Activities   Increase in notes payable $  fill in the blank 33 Increase in long-term debt fill in the blank 34 Increase in common stock fill in the blank 35 Payment of common dividends fill in the blank 36    Net cash provided by financing activities $  fill in the blank 37 Summary   Net increase/decrease in cash $  fill in the blank 38 Cash at the beginning of the year fill in the blank 39 Cash at the end of the year $  fill in the blank 40   Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. NOWC2020: $  fill in the blank 41 thousand NOWC2021: $  fill in the blank 42 thousand FCF2021: $  fill in the blank 43 thousand If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders? If Laiho increased its dividend payout ratio, the firm would pay     corporate taxes and the company's shareholders would pay     taxes on the dividends they would receive. Assume that the firm's after-tax cost of capital is 9.5%. What is the firm's 2021 EVA? $  fill in the blank 46 thousand Assume that the firm's stock price is $22 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021? $  fill in the blank 47 thousand

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
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Excel Activity: Financial Statements, Cash Flow, and Taxes

Laiho Industries's 2020 and 2021 balance sheets (in thousands of dollars) are shown.

 

Laiho Industries: Balance Sheets as of December 31 (thousands of dollars)
  2021   2020  
Cash $ 106,278   $ 91,660  
Accounts receivable   103,347     85,164  
Inventories   38,965     35,757  
   Total current assets $ 248,590   $ 212,581  
Net fixed assets   67,963     42,749  
Total assets $ 316,553   $ 255,330  
             
Accounts payable $ 30,151   $ 22,600  
Accruals   31,711     24,202  
Notes payable   17,606     14,626  
   Total current liabilities $ 79,468   $ 61,428  
Long-term debt   77,320     64,070  
   Total liabilities $ 156,788   $ 125,498  
Common stock   100,500     88,000  
Retained earnings   59,265     41,832  
   Total common equity $ 159,765   $ 129,832  
Total liabilities and equity $ 316,553   $ 255,330  

 

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answers to the nearest whole number. Use a minus sign to enter negative values, if any.

 

 
Download spreadsheet Financial Statements, Cash Flow, and Taxes-db38b3.xlsx

 

  1. Sales for 2021 were $432,650,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $7,748,000, the corporate tax rate was 25%, and Laiho pays 48.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement.

     

    Laiho Industries: Income Statement for Year Ending December 31, 2021 (thousands of dollars)
      2021
    Sales $  fill in the blank 2
       Operating costs excluding depreciation and amortization fill in the blank 3
    EBITDA $  fill in the blank 4
       Depreciation and amortization fill in the blank 5
    EBIT $  fill in the blank 6
       Interest fill in the blank 7
    EBT $  fill in the blank 8
       Taxes (25%) fill in the blank 9
    Net income $  fill in the blank 10
       
    Common dividends $  fill in the blank 11
    Addition to retained earnings $  fill in the blank 12

     

  2. Construct the statement of stockholders' equity for the year ending December 31, 2021, and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year.

     

    Laiho Industries: Statement of Stockholders' Equity, December 31, 2021 (thousands of dollars)
      Common Stock Retained Earnings Total Stockholders' Equity
    Balances, December 31, 2020   $  fill in the blank 13     $  fill in the blank 14     $  fill in the blank 15  
    Common stock issue   fill in the blank 16           fill in the blank 17  
    2021 Net income         fill in the blank 18        
    Cash dividends         fill in the blank 19        
    Addition to retained earnings               fill in the blank 20  
    Balances, December 31, 2021   $  fill in the blank 21     $  fill in the blank 22     $  fill in the blank 23  

     

     

    Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars)
      2021
    Operating Activities  
    Net income $  fill in the blank 24
    Depreciation and amortization fill in the blank 25
    Increase in accounts payable fill in the blank 26
    Increase in accruals fill in the blank 27
    Increase in accounts receivable fill in the blank 28
    Increase in inventories fill in the blank 29
       Net cash provided by operating activities $  fill in the blank 30
    Investing Activities  
    Additions to property, plant, and equipment $  fill in the blank 31
       Net cash used in investing activities $  fill in the blank 32
    Financing Activities  
    Increase in notes payable $  fill in the blank 33
    Increase in long-term debt fill in the blank 34
    Increase in common stock fill in the blank 35
    Payment of common dividends fill in the blank 36
       Net cash provided by financing activities $  fill in the blank 37
    Summary  
    Net increase/decrease in cash $  fill in the blank 38
    Cash at the beginning of the year fill in the blank 39
    Cash at the end of the year $  fill in the blank 40

     

  3. Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash.

    NOWC2020: $  fill in the blank 41 thousand

    NOWC2021: $  fill in the blank 42 thousand

    FCF2021: $  fill in the blank 43 thousand

  4. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?

    If Laiho increased its dividend payout ratio, the firm would pay 

     

     corporate taxes and the company's shareholders would pay 

     

     taxes on the dividends they would receive.

  5. Assume that the firm's after-tax cost of capital is 9.5%. What is the firm's 2021 EVA?

    $  fill in the blank 46 thousand

  6. Assume that the firm's stock price is $22 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021?

    $  fill in the blank 47 thousand

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