2008 2007 Assets Current assets: ‘Cash and equivalents $ 10 $ 80 Accounts receivable 375 HS Inventories 615 415 Total current assets $1,000 $ 810 Net fixed assets: Net plant and equipment (cost minus depreciation) 1,000 870 Other assets expected to last more than a year oO __o Total assets: 32000 $1,680 Liabilities and Equity Current liabilities; ‘Accounts payable $s 60 $ 30 ‘Accruals 140 130 Notes payable 110 60 Total current liabilities $ 310 § 20 Long-tem bonds 750 580 Total debt $1,060 $ 800 Common equity: ‘Common stock (50,000,000 shares) $ 130 $ 130 Retained earnings 810 750 Total common equity $940 $ 830 Total liabilities and equity $2900 $1,6802007 Net sales $2,8500 Operating costs except depreciation and amortization 2.4970 Depreciation and amortization 900 Total operating costs $2,5870 Operating income, or eamings before interest and taxes (EBIT) 2630 Less interest 600 Earnings before taxes (EBT) $ 2030 Taxes (40%) 812 Net income $1218 Here are some related items: Total dividends $ 575 $ 530 Addition to retained eamings = Net income - Total dividends $ 600 S688 Per-share data: ‘Common stock price $ 23.06 $ 2600 Earnings per share (EPS)* $ 235 S$ 244 Dividends per share (DPS)* $115 $ 106 Book value per share (BVPS) $ 18.80 $ 1760COMMON STOCK Se Total Shares Retained Stockholders’ (000) Amount Earnings Equity Balances, December 31, 2007 50,000 $130.0 $750.0 $880.0 2008 Net Income S75 Cash Dividends © 575) Addition to Retained Eamings $600 $600 Balances, December 31, 2008 50000 10.0 940.0 2008 a. I. Operating Activities b. Net income $117.5 Depreciation and amortization 100.0 d. Increase in inventories (200.0) e Incre: i (60.0) g. incre 10.0 h. Net cash provided by (used in) operating activities ($2.5) i. IL Long-Term Investing Activities je Additions to property, plant, and equipment ($ 230.0) k. Net cash used in investing activities ($230.9) IIL Financing Activities m. Increase in notes payable $ 50.0 n. Increase in bonds outstanding 170.0 oO. Payment of dividends to stockholders (57.5) P. Net cash provided by financing activities $162.5 q. IV. Summary 6 Net decrease in cash (Net sum of |, I, and ill) s. Cash and equivalents at the beginning of the year t Cash and equivalents at the end of the year