Homework Help is Here – Start Your Trial Now!
Business
Accounting
3-14 FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (4,000 shares) Retained earnings Common equity Total liabilities and equity Balance Sheets as of December 31 EBIT Interest EBT Taxes (40%) Net income 2018 $ 15,000 35,000 33,320 $ 83,320 48,000 $131,320 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Income Statement for Year Ending December 31, 2018 2017 $ 14,000 30,000 27,000 $ 71,000 46,000 $117,000 $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $117,000 $210,000 160,000 $ 50,000 6,000 $44,000 5,350 $ 38,650 15,460 $ 23,190 $ 13,920 Dividends paid a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. b. What was Arlington's 2018 free cash flow? c. Construct Arlington's 2018 statement of stockholders' equity,

3-14 FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (4,000 shares) Retained earnings Common equity Total liabilities and equity Balance Sheets as of December 31 EBIT Interest EBT Taxes (40%) Net income 2018 $ 15,000 35,000 33,320 $ 83,320 48,000 $131,320 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Income Statement for Year Ending December 31, 2018 2017 $ 14,000 30,000 27,000 $ 71,000 46,000 $117,000 $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $117,000 $210,000 160,000 $ 50,000 6,000 $44,000 5,350 $ 38,650 15,460 $ 23,190 $ 13,920 Dividends paid a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. b. What was Arlington's 2018 free cash flow? c. Construct Arlington's 2018 statement of stockholders' equity,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Pls help correct thanks all parts correct
3-14 FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (4,000 shares) Retained earnings Common equity Total liabilities and equity Balance Sheets as of December 31 2018 $ 15,000 35,000 33,320 $ 83,320 48,000 $131,320 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 Income Statement for Year Ending December 31, 2018 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization 2017 b. What was Arlington's 2018 free cash flow? c. Construct Arlington's 2018 statement of stockholders' equity. $ 14,000 30,000 27,000 $ 71,000 46,000 $ 117,000 $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 $210,000 160,000 $ 50,000 6,000 $ 44,000 5,350 $ 38,650 15,460 $ 23,190 $ 13,920 EBIT Interest EBT Taxes (40%) Net income Dividends paid a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.
Transcribed Image Text:3-14 FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (4,000 shares) Retained earnings Common equity Total liabilities and equity Balance Sheets as of December 31 2018 $ 15,000 35,000 33,320 $ 83,320 48,000 $131,320 $ 10,100 8,000 7,000 $ 25,100 20,000 $ 45,100 40,000 46,220 $ 86,220 $131,320 Income Statement for Year Ending December 31, 2018 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization 2017 b. What was Arlington's 2018 free cash flow? c. Construct Arlington's 2018 statement of stockholders' equity. $ 14,000 30,000 27,000 $ 71,000 46,000 $ 117,000 $ 9,000 6,000 5,050 $ 20,050 20,000 $ 40,050 40,000 36,950 $ 76,950 $ 117,000 $210,000 160,000 $ 50,000 6,000 $ 44,000 5,350 $ 38,650 15,460 $ 23,190 $ 13,920 EBIT Interest EBT Taxes (40%) Net income Dividends paid a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Economic Value Added
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS