Sheet1
Financial Statements, Cash Flow, and Taxes
Laiho Industries: Balance Sheets as of December 31
(in thousands of dollars)
2021 2020
Assets
Cash $104,522 $89,380
Accounts receivable 102,664 85,296
Inventories 37,668 34,558
Total cu
ent assets $0 $0
Net fixed assets 68,625 43,394
Total assets $0 $0
Liabilities and equity
Accounts payable $30,187 $22,220
Accruals 30,829 22,835
Notes payable 15,431 13,011
Total cu
ent liabilities $0 $0
Long-term debt 75,628 65,128
Total liabilities $0 $0
Common stock 102,500 90,000
Retained earnings 58,904 39,434
Total common equity $0 $0
Total liabilities and equity $0 $0
a. Constructing the firm's 2021 income statement
Laiho Industries: financial information for 2021
(in thousands of dollars)
Sales $472,650
EBITDA as a percentage of sales 15%
Depr. as a % of fixed assets 17%
Tax rate 25%
Interest expense $9,068
Dividend payout ratio 48.25%
Laiho Industries: Income Statement for Year Ending December 31, 2021
(in thousands of dollars)
2021 Formulas
Sales ERROR:#N/A
Operating costs excluding depreciation and amortization ERROR:#N/A
EBITDA ERROR:#N/A
Depreciation and amortization ERROR:#N/A
EBIT ERROR:#N/A
Interest ERROR:#N/A
EBT ERROR:#N/A
Taxes (25%) ERROR:#N/A
Net Income ERROR:#N/A
Common dividends ERROR:#N/A
Addition to retained earnings ERROR:#N/A
b. Constructing the statement of stockholders' equity for the year ending December 31, 2021,
and the 2021 statement of cash flows
Laiho Industries: Statement of Stockholders' Equity, December 31, 2021
(in thousands of dollars)
Common
Stock Retained Earnings Total Stockholders' Equity
Balances, December 31, 2020 ERROR:#N/A ERROR:#N/A ERROR:#N/A
Common stock issue ERROR:#N/A ERROR:#N/A
2021 Net income ERROR:#N/A
Cash dividends ERROR:#N/A
Addition to retained earnings ERROR:#N/A
Balances, December 31, 2021 ERROR:#N/A ERROR:#N/A ERROR:#N/A
Laiho Industries: Statement of Cash Flows for 2021
(in thousands of dollars)
Operating Activities 2021 Formulas
Net income ERROR:#N/A
Depreciation and amortization ERROR:#N/A
Increase in accounts payable ERROR:#N/A
Increase in accruals ERROR:#N/A
Increase in accounts receivable ERROR:#N/A
Increase in inventories ERROR:#N/A
Net cash provided by operating activities ERROR:#N/A
Investing Activities
Additions to property, plant, and equipment ERROR:#N/A
Net cash used in investing activities ERROR:#N/A
Financing Activities
Increase in notes payable ERROR:#N/A
Increase in long-term debt ERROR:#N/A
Increase in common stock ERROR:#N/A
Payment of common dividends ERROR:#N/A
Net cash provided by financing activities ERROR:#N/A
Summary
Net increase/decrease in cash ERROR:#N/A
Cash at the beginning of the year ERROR:#N/A
Cash at the end of the year ERROR:#N/A
c. Calculating 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF)
Excesss cash $0
NOWC2020 (in thousands of dollars) ERROR:#N/A
NOWC2021 (in thousands of dollars) ERROR:#N/A
FCF2021 (in thousands of dollars) ERROR:#N/A
e. Calculating the firm's 2021 EVA
After-tax cost of capital 10.5%
EVA2021 (in thousands of dollars) ERROR:#N/A
f. Calculating the firm's MVA at year-end 2021
Stock price $22
Shares outstanding 10,000
MVA2021 (in thousands of dollars) ERROR:#N/A