Reference no: EM13505668
Financial Statement Analysis
BALANCE SHEET
At December 31 (in millions, except share and per share data) 20x6 20x5
Assets
Current assets
Cash and cash equivalents ................................................................................................ $ 448 $ 246
Receivables, net ................................................................................................................ 2,337 2,653
Inventories, net................................................................................................................... 1,137 1,718
Deferred income taxes ........................................................................................................ 521 575
Other current assets ........................................................................................................... 240 299
Total current assets ....................................................................................................... 4,683 5,491
Property, plant, and equipment, net ................................................................................... 5,659 5,919
Goodwill, net....................................................................................................................... 948 947
Other long-term assets....................................................................................................... 2,072 1,855
Total assets.................................................................................................................... $13,362 $14,212
Liabilities and shareholders' equity
Current liabilities
Accounts payable and other current liabilities ................................................................... $ 3,276 $ 3,403
Short-term borrowings........................................................................................................ 1,378 2,058
Current portion of long-term debt....................................................................................... 156 148
Accrued income taxes ......................................................................................................... 544 606
Total current liabilities ................................................................................................... 5,354 6,215
Long-term debt, net of current portion ............................................................................... 1,666 1,166
Postemployment liabilities ................................................................................................ 2,728 2,722
Other long-term liabilities .................................................................................................. 720 681
Total liabilities ............................................................................................................... 10,468 10,784
Shareholders' equity
Common stock, $2.50 par value
950,000,000 shares authorized: issued 391,292,760 shares in 20x6 and 20x5;
290,929,701 and 290,484,266 shares outstanding in 20x6 and 20x5 ........................... 978 978
Additional paid in capital........................................................................................................ 849 871
Retained earnings................................................................................................................... 7,431 7,869
Accumulated other comprehensive loss .................................................................................. (597) (482)
8,661 9,236
Treasury stock, at cost; 100,363,059 shares in 20x6 and 100,808,494 shares in 20x5........... (5,767) (5,808)
Total shareholders' equity................................................................................................... 2,894 3,428
Total liabilities and shareholders' equity ............................................................................ $13,362 $14,212
Prepare forecasts of its income statement, balance sheet, and statement of cash flows for 20x7
under the following assumptions:
a. All financial ratios remain at 20x6 levels.
b. Kodak will not record restructuring costs for 20x7.
c. Taxes payable are at the 20x6 level of $544 million.
d. Depreciation expense charged to SG&A is $765 million and $738 million for 20x6 and 20x5, respectively.
e. Gross PPE is $12,982 million and $12,963 million for 20x6 and 20x5, respectively.
f. Projected current maturities of long-term debt are $13 million for 20x7.