Excel Activity: Financial Statements, Cash Flow, and Taxes Laiho Industries's 2020 and 2021 balance sheets (in thousands
Posted: Sun Jul 03, 2022 3:55 pm
Excel Activity: Financial Statements, Cash Flow, and Taxes
Laiho Industries's 2020 and 2021 balance sheets (in thousands ofdollars) are shown.
Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2021 $101,660 104,680 39,034 $245,374 68,547 $313,921 $ 30,446 30,489 832 $ 76,767 76,380 $153,147 105,500 55,274 $160,774 $313,921 2020 $ 89,975 85,385 35,704 $211,064 43,517 $254,581 $ 22,740 23,649 13,482 $ 59,871 64,830 $124,701 93,000 36,880 $129,880 $254,581
a. Sales for 2021 were $430,150,000, and EBITDA was 16% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $9,093,000, 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) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income Common dividends Addition to retained earnings $ $ $ LA $ $ LA 2021 b. 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) Retained Earnings Balances, December 31, 2020 Common stock issue 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 Common Stock $ $ $ $ Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) Total Stockholders' Equity $ $
Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income Depreciation and amortization Increase in accounts payable Increase in accruals Increase in accounts receivable Increase in inventories Net cash provided by operating activities Investing Activities Additions to property, plant, and equipment Net cash used in investing activities Financing Activities Increase in notes payable Increase in long-term debt Increase in common stock Payment of common dividends Net cash provided by financing activities Summary Net increase/decrease in cash Cash at the beginning of the year Cash at the end of the year $ $ $ $ $ $ $ $
c. Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. NOWC2020: $ NOWC2021: $ FCF2021: $ d. 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 taxes on the dividends they would receive. thousand thousand $ thousand e. Assume that the firm's after-tax cost of capital is 10.5%. What is the firm's 2021 EVA? thousand thousand âś“corporate taxes and the company's shareholders would pay f. 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?
Laiho Industries's 2020 and 2021 balance sheets (in thousands ofdollars) are shown.
- Excel Activity Financial Statements Cash Flow And Taxes Laiho Industries S 2020 And 2021 Balance Sheets In Thousands 1 (94.83 KiB) Viewed 15 times
a. Sales for 2021 were $430,150,000, and EBITDA was 16% of sales. Furthermore, depreciation and amortization were 18% of net fixed assets, interest was $9,093,000, 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) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income Common dividends Addition to retained earnings $ $ $ LA $ $ LA 2021 b. 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) Retained Earnings Balances, December 31, 2020 Common stock issue 2021 Net income Cash dividends Addition to retained earnings Balances, December 31, 2021 Common Stock $ $ $ $ Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) Total Stockholders' Equity $ $
Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) 2021 Operating Activities Net income Depreciation and amortization Increase in accounts payable Increase in accruals Increase in accounts receivable Increase in inventories Net cash provided by operating activities Investing Activities Additions to property, plant, and equipment Net cash used in investing activities Financing Activities Increase in notes payable Increase in long-term debt Increase in common stock Payment of common dividends Net cash provided by financing activities Summary Net increase/decrease in cash Cash at the beginning of the year Cash at the end of the year $ $ $ $ $ $ $ $
c. Calculate 2020 and 2021 net operating working capital (NOWC) and 2021 free cash flow (FCF). Assume the firm has no excess cash. NOWC2020: $ NOWC2021: $ FCF2021: $ d. 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 taxes on the dividends they would receive. thousand thousand $ thousand e. Assume that the firm's after-tax cost of capital is 10.5%. What is the firm's 2021 EVA? thousand thousand âś“corporate taxes and the company's shareholders would pay f. 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?