Please show step by step how to solve this problem and solution. I can include t

Question

Please show step by step how to solve this problem and solution. I can include the text I was using to try and solve this problem. Print by: LEA HARVEY 70.71.72/ Required Chapter 12 Homework "Exercise 12-13 Your answer is incorrect. Try again. The following income statements and other information are available for the Schneider Company: 2014 2013 2012 Sales Less cost of goods sold Gross margin Less: $387,200,000 $257,000,000 $188,300,000 212,960,000 123,360,000 90,384,000 174,240,000 133,640,000 97,916,000 Selling and administrative costs 27,104,000 25,700,000 18,830,000 15,488,000 12,850,000 9,415,000 131,648,000 95,090,000 69,671,000 39,494,400 28,527,000 20,901,300 $92,153,600 $66,563,000 $48,769,700 $710,800,000 $666,900,000 $437,500,000 Noninterest-bearing current liabilities 137,400,000 11,200,000 98,610,000 12% Research and development Income from operations Less taxes on income Net income Total assets Cost of capital 12% 12% Calculate EVA for 2014. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over three years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725) EVA for 2014 23345600 EVA for 2014 123345600 Question Attempts: 2 of 3 used

Explanation / Answer

Step -1:

Income before taxes

$    131,648,000.00

Add: Interest expenses

$                              -  

Add: Current period R&D

$      15,488,000.00

Less: Amortization of prior R&D

2014: 15,488,000 * 1/3

$      (5,162,667.00)

2013: 12,850,000 * 1/3

$      (4,283,333.00)

2012: 9,415,000 * 1/3

$      (3,138,333.00)

$    134,551,667.00

Less: Taxes at 30%

$    (40,365,500.10)

Adjusted NOPAT

$      94,186,166.90

Step-2:

Total assets

$    710,800,000.00

Plus: Unamortized R&D

2014: 15,488,000*2/3

$      10,325,333.33

2013: 12850,000 *1/3

$        4,283,333.00

$    725,408,666.33

Less: NIBCL

$ (137,400,000.00)

Adjusted investment

$    588,008,666.33

Step-3:

Adjusted NOPAT

$      94,186,166.90

Less: Cost of capital * adjusted investment
(.12 * $588,008,666.33)

$      70,561,039.96

EVA

$      23,625,126.94

Step -1:

Income before taxes

$    131,648,000.00

Add: Interest expenses

$                              -  

Add: Current period R&D

$      15,488,000.00

Less: Amortization of prior R&D

2014: 15,488,000 * 1/3

$      (5,162,667.00)

2013: 12,850,000 * 1/3

$      (4,283,333.00)

2012: 9,415,000 * 1/3

$      (3,138,333.00)

$    134,551,667.00

Less: Taxes at 30%

$    (40,365,500.10)

Adjusted NOPAT

$      94,186,166.90

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