Question
1. Compute capital for ATC in 2019 as well as excess cash and working capital ATC Company Balance Sheet on December31 ($ millions) 2018 2019
1. Compute capital for ATC in 2019 as well as excess cash and working capital
ATC Company | ||
Balance Sheet on December31 ($ millions) | ||
| 2018 | 2019 |
Inventory | 20 | 28 |
Accounts Receivable | 36 | 26 |
Other | 29 | 36 |
Cash | 410 | 473 |
Total Current Assets | 495 | 562 |
NPPE | 1,847 | 2,237 |
Other Fixed Assets | 156 | 212 |
Total Fixed Assets | 2,003 | 2,449 |
Total Assets | 2,499 | 3,011 |
Short Term Debt and Notes | 152 | 173 |
Accounts Payable | 27 | 28 |
Other | 334 | 412 |
Total Current Liabilities | 514 | 613 |
Long Term Debt | 1,119 | 1,249 |
Other Long Term Liabilities | 175 | 266 |
Total Long Term Liabilities | 1,294 | 1,515 |
Common Equity | 690 | 884 |
Total Liabilities & Equity | 2,499 | 3,011 |
Income Statement for Year Ending December 31 ($ millions) | ||
| 2018 | 2019 |
Total revenues | 1,667 | 1,841 |
Cost of sales | 1,250 | 1,297 |
Gross profit | 417 | 544 |
Selling, general & admin expenses | 174 | 180 |
Operating profit | 243 | 364 |
Net interest expense | 45 | 64 |
Other income (expense) | 0 | 2 |
Income before tax | 199 | 301 |
Taxes | 38 | 69 |
Net Income | 162 | 232 |
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