Assume that there were 15 million shares outstanding at the

Question

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.

Lan & Chen Technologies: Income Statements for Year Ending December 31
(Thousands of Dollars)	2013	2012
Sales	$945,000	$900,000
Expenses excluding depreciation and amortization	812,700	774,000
EBITDA	$132,300	$126,000
Depreciation and amortization	33,100	31,500
EBIT	$99,200	$94,500
Interest Expense	10,470	8,600
EBT	$88,730	$85,900
Taxes (40%)	35,492	34,360
Net income	$53,238	$51,540
Common dividends	$43,300	$41,230
Addition to retained earnings	$9,938	$10,310
Lan & Chen Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets	2013	2012
Cash and cash equivalents	$47,250	$45,000
Short-term investments	3,800	3,600
Accounts Receivable	283,500	270,000
Inventories	141,750	135,000
Total current assets	$476,300	$453,600
Net fixed assets	330,750	315,000
Total assets	$807,050	$768,600
Liabilities and equity
Accounts payable	$94,500	$90,000
Accruals	47,250	45,000
Notes payable	26,262	9,000
Total current liabilities	$168,012	$144,000
Long-term debt	94,500	90,000
Total liabilities	$262,512	$234,000
Common stock	444,600	444,600
Retained Earnings	99,938	90,000
Total common equity	$544,538	$534,600
Total liabilities and equity	$807,050	$768,600

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.

Additional Input Data
Stock price per share	$65.00
# of shares (in thousands)	15,000
After-tax cost of capital	8.0%

Attachment:- Assignment.rar