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INCOME STATEMENT
Net Sales Operating cost exclusing depreciation and amotization Earnings before interest, taxes, depreciation, and amotization (EBITDA) Depreciation Amortization Depreciationand amortization Earnings before interest and taxes (EBIT or operating income) Less Interest Earnings before taxes (EBT) Taxes (40%) Net income before preferred dividends Preferred dividens NetIncome Common dividends Addition to retained earnings Per-share data: Common stock price Earnings per share (DPS) Dividends per share (DPS) Book value per share(BVPS) Cash Flow per share (CFPS)Bailey Corporation recently reported the following income statement ( in thousand

ACRONYMS
Net Operating Profit After Taxes (NOPAT) Net cash flow (NCF) Operating cash flow (OCF) Totaloperating capital (TOC) Net Investment in operating capital (NIOC) Gross investment (GI) Free Cash Flow (FCF) After-tax dollar cost of capital Economic Value Added (EVA)

2009
18,700,000

20102,400,000 4,500,000 5,400,000 20,000,000 1,300,000 4,300,000 1,100,000 1,100,000 2,000,000 400,000 400,000

COME STATEMENT
14,000,000 7,000,000 7,000,000 3,000,000 3,000,000 4,000,000 1,500,0002,500,000 1,000,000 1,500,000 1,500,000 -

ted the following income statement ( in thousands of dollars):

EQUATION FORM:
NOPAT= EBIT*(1 -Tax rate). NCF = Net income + Depreciation andamortization OCF = NOPAT+ Depreciation TOC = Net operating working capital + Net fixed assets NI = Total operating capital 2010 - Total operating capital 2009 GI = Net investment + Depreciation FCF =Operating cash flow - Gross investment in operation capital FCF = NOPAT - Net investment in operation capital After-tax dollar cost of capital = TOC*0.10 EVA = Net operating profit after taxes,or NOPAT - After-tax dollar cost of capital used to support operations EVA = EBIT(1 - Corporate tax rate) - (Total investor-supplied operating capital)(After-tax percentage cost of capital)