TYPES OF FINANCIAL STATEMENTS

1. BALANCE SHEET

Table 1 present a typical balance sheet for Miyetti Industries as at December 31, 2018.

Miyetti Industries Ltd Balance Sheets as at December 31 2018 (Millions of Dollars)

ASSETS 2018 2017 LIABILITIES AND EQUITY 2018 2017

Cash and equivalents $10 $15 Accounts payable $60 $30

Short-term investments 0 65 Notes payable 110 60

Accounts receivable 375 315 Accruals 140 130

Inventories 615 415 Total current liabilities $310 $220

Total current assets $1,000 $ 810 Long-term bonds 754 580

Net plant and equipment 1,000 870 Total liabilities $1,064 $800

Preferred stock (400,000 40 40

shares)

Common stock (50,000,000 130 130

shares)

Retained earnings 766 710

Total common equity $ 896 $ 840

Total assets $2,000 $1,680 Total liabilities and equity $2,000 $1,680

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 2. INCOME STATEMENT

Table 2: Miyetti Industries Ltd: Income Statement for Year Ending December 31 2018
Miyetti Industries Ltd: Income Statements for Year Ending December 31
(Millions of Dollars, Except for Per Share Data)
2018 2017
Net sales $3,000.0 $2,850.0
Operating costs excluding depreciation and amortization 2,616.2 2,497.7
Earnings before interest, taxes, depreciation and amortization $ 383.8 $ 353.0
(EBITDA)
Depreciation 100.0 90.0
Amortization 0.0 0.0
Depreciation and amortization $ 100.0 $ 90.0
Earnings before interest and taxes (EBIT, or operating income) $ 283.8 $ 203.0
Less interest expenses 78.3 81.2
Earnings before taxes (EBIT) $ 195.8 $ 203.0
Taxes (40%) 78.3 81.2
Net income before preferred dividends $ 117.5 $121.8
Preferred dividends 4.0 4.0
Net income $ 113.5 $ 117.8
Additional Information
Common dividends $ 57.5 $ 53.0
Addition to retained earnings $ 56.0 $ 64.8
Per Share Data
Common stock price $ 23.00 $ 26.00
Earnings per share (EPS) $ 2.27 $ 2.36
Dividends per share (DPS) $ 1.15 $ 1.06
Book value per share (BVPS) $ 17.92 $ 16.80
Cash flow per share (CFPS) $ 4.27 $ 4.16
Note: There are 50,000,000 shares of common stock outstanding and EPS is based on earnings after
preferred dividends — that is, on net income available to common stockholders.

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 3. STOCHHOLDERS’ EQUITY

Table 3: Miyetti Industries Ltd Statement of Stockholders’ Equity

COMMON STOCK (MILLIONS)

SHARES AMOUNT RETAINED TOTAL

EARNINGS EQUITY

Balances, Dec 31, 2017 50 $130.0 $710.0 $840.0

Net income $113.5 $113.5

Cash dividends (57.5) (57.5)

Issuance of common stock 0 0.0

Balance, Dec 31, 2018 50 $130.0 $766.0 $896.0

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 4. STATEMENT OF CASH FLOW
Table 4: Statement of Cash Flows of Miyetti Industries Ltd for 2018
Statement of Cash Flows of Miyetti Industries Ltd for 2018 (Millions of Dollars)
CASH PROVIDED
OR USED
Operating Activities
Net income before preferred dividends $117.7
Adjustments
Non cash adjustments
Depreciation 100.0
Due to changes in working capital
Increase in accounts receivable (60.0)
Increase in inventories (200.0)
Increase in accounts payable 30.0
Increase in accruals 10.0
Net cash provided (used) by operating activities ($2.5)
Investing Activities
Cash used to acquire fixed assets ($230.0)
Sale of short-term investments $ 65.0
Net cash provided (used) by investing activities ($165.0)
Financing Activities
Increase in notes payable $ 50.0
Increase in bonds outstanding 174.0
Payment of preferred and common dividends (61.5)
Net cash provided (used) by financing activities $162.5
Summary
Not change in cash ($5.0)
Cash at beginning of year 15.0
Cash at end of year $10.0