Financial Statements and Other Data on NWC Inc. (Millions of Dollars).
A. Balance Sheets
2020 2021
Cash and cash equivalents $20 $25
Accounts Receivable $240 $300
Inventories $240 $300
Net Fixed Assets $500 $625
Total Assets $1,000 $1,250
Accounts Payable & Accruals $100 $125
Notes Payable $100 $100
Long Term Debt $100 $190
Common Stock $500 $500
Retained earnings $200 $245
Total liabilities & Equity $1,000 $1,250
B. Income Statements
2020 2021
Sales $2,000 $2500
Less variable costs $1200 $1500
Fixed costs $700 $875
Earnings before interest and taxes (EBIT) $100 $125
Interest expense $16 $16
Earnings before taxes (EBT) $84 $109
Taxes (40%) $33.60 $43.60
Net income $50.40 $65.40
Other Data:
Price per share = $15.00
No. of shares outstanding =1,000
What is MWC free cash flows for 2021?
Find the firm’s MVA. Show your work.
