Not a member of Pastebin yet?
Sign Up,
it unlocks many cool features!
- Download: http://solutionzip.com/downloads/ch02-p15-lan-chen-technologies/
- Begin with the partial model in the file Ch02 P15 Build a Model.xls on the textbookβs
- Web site.
- a. Using the financial statements shown below for Lan & Chen Technologies, calculate
- net operating working capital, total net operating capital, net operating profit
- after taxes, free cash flow, and return on invested capital for 2010. (Hint: Start
- with the partial model in the file and report all dollar figures in thousands to reduce
- clutter.)
- b. Assume there were 15 million shares outstanding at the end of 2010, the year-end
- closing stock price was $65 per share, and the after-tax cost of capital was 8%.
- Calculate EVA and MVA for 2010.
- Lan & Chen Technologies: Income Statements for Year Ending December 31
- (Thousands of Dollars)
- 2010 2009
- 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
- 2010 2009
- Assets
- 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
- Download: http://solutionzip.com/downloads/ch02-p15-lan-chen-technologies/
Add Comment
Please, Sign In to add comment