Professional Documents
Culture Documents
Michael Rago
______________________________
Andrew Light, Ph.D.
Chairman of Thesis
______________________________
Robert Mateer M.B.A.
Committee Member
______________________________
Timothy Van Voorhis Ph.D.
Committee Member
______________________________
Brenda Ayres, Ph.D.
Honors Assistant Director
______________________________
Date
Authors note; EVA (EVA) is a mark of Stern Stewart, & Co. but will appear throughout this paper
without the symbol.
EVA = [ Net operating profit - ((Net operating profit excess ([depreciation]) other
increase in reserves)*(tax rate)) ] -WACC*capital (Mkelinen).
The other, and not as accurate method would be to anticipate what the applicable
tax rate would be and use that to calculate the depreciation in EVA (Mkelinen). This
method may be easier to implement than the previous one, according to Mkelinen.
5,620
(3,513)
(1,743)
364
0
364
(44)
320
(128)
192
ASSETS
Current assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Other current assets
Total current assets
Fixed assets
Computer equipment
Furniture and fixtures
Motor vehicles
Equipment
Other fixed assets
Total fixed assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts payable
Short-term debt
Accrued expenses
Total current liabilities
Long-term liabilities
Bank loan/long-term debt
1997
1998
21
668
852
33
26
1,600
28
768
892
43
31
1,762
76
15
30
157
22
300
1,900
84
19
31
168
35
337
2,099
510
104
190
804
589
120
211
920
496
496
550
550
25
Retained earnings
575
604
600
629
TOTAL LIABILITIES
1,900 2,099