To calculate your company's growth and performance metrics, refer to the following table for concise answers to two key questions. The values are shown below (rounded to the nearest dollar):
Metric Year 2 General Metric
Sales: $3,675,000
Net income: $297,675
Net cash flow (NCF): $
Net operating working capital (NOWC): $1,506,641
Earnings per share (EPS):
Dividends per share (DPS): $0.61
Book value per share (BVPS):
Cash flow per share (CFPS):
Market price per share: $21.73
Year 1 Percentage Change
Atherton Corp. Balance Sheet
Assets: Year 2 Year 1
Cash and cash equivalents: $249,375 $199,500
Receivables: $831,250 $665,000
Inventory: $1,454,688 $1,163,750
Current assets: $2,535,313 $2,028,250
Net fixed assets: $1,620,937 $1,296,750
Total assets: $4,156,250 $3,325,000
Liabilities and Equity
Account payable: $623,438 $498,750
Accruals: $405,234 $324,188
Notes payable: $872,813 $698,250
Total current liabilities: $1,901,485 $1,521,188
Long-term debt: $600,078 $640,063
Total liabilities: $2,701,563 $2,161,250
Common stock ($1 par): $232,750
Retained earnings: $1,163,750 $931,000
Total equity: $1,454,687 $1,163,750
Total liabilities and equity: $4,156,250 $3,325,000
Income Statement
Year 2 Year 1
Sales: $3,675,000 $3,500,000
Expenses: $2,940,000 $2,870,000
EBITDA: $735,000 $630,000
Depreciation: $128,625 $122,500
EBIT: $606,375 $507,500
Interest expense: $110,250 $87,500
EBT: $496,125 $420,000
Tax expense (40%): $198,450 $168,000
Net income: $297,675 $252,000
Common dividends: $178,605 $151,200
Addition to retained earnings: $119,070 $100,800
Metric Year 2 MVA Calculation
Market value of equity: $1,454,687
Book value of equity: $1,163,750
Market Value Added (MVA): $3,433,063
Percentage Change: 37.53%
Metric VA Calculation
Net operating profit after tax (NOPAT): $363,825
Weighted average cost of capital: 7.30%
Dollar cost of capital: $25.00
Return on invested capital (ROIC): 36.64%
Economic Value Added (EVA): -$4,440
