Balance sheet questions (7 and 8 points) 1. Is the company balance sheets strong? Provide at least two ratios to support your answer 2. Did the company balance sheet conditions improve or deteriorate? Provide at least four ratiost support your answer Company 1: Income statements (in $ millions, except per share) 2017 2016 17,630.3 11,681.1 3,328.0 Net sales Cost of sales Selling, general, and administrative expenses Loss (gain) from asset disposals Impairment and other charges Operating profit Interest, net Earnings before income taxes Income taxes After-tax earnings from joint ventures Net earnings, including earnings attributable to noncontrolling interests Net earnings attributable to noncontrolling interests Net earnings attributable to the company 2018 15,619.8 10,056.0 2,801.3 13.5 182.6 2,566.4 295.1 2,271.3 655.2 16,563.1 10,733.6 3,118.9 (148.2) 151.4 2,707.4 303.8 2,403.6 755.2 543.9 2,077.3 315.4 1,761.9 586.8 84.3 85.0 88.4 1,701.1 43.6 1,657.5 1,736.8 39.4 1,697.4 1,259.4 38.1 1,221.3 2.02 Earnings per share - basic Earnings per share - diluted Dividends per share 2.82 2.77 1.92 2.83 2.77 1.78 1.97 1.67 Company 1: Balance Sheets (in S millions, except per share) ASSETS 2018 Current assets: Cash and cash equivalents Receivables Inventories Prepaid expenses and other current assets Total current assets Land, buildings, and equipment Goodwill Other intangible assets Other assets Total assets 766.1 1,430.1 1.483.6 381.6 4,061.4 3,687.7 8,747.2 4,530.4 785.9 21,812.6 763.7 1,360.8 1.413.7 399.0 3,937.2 3,743.6 8,741.2 4,538.6 751.7 21,712.3 2.046.5 LIABILITIES AND EQUITY Current liabilities: Accounts payable Current portion of long-term debt Notes payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes Other liabilities Total liabilities 2,119.8 604.7 1,234.1 1,372.2 5,330.8 7.642.9 1,719.4 1,523.1 16,216.2 ,103.4 269.8 1,595.0 5,014.7 7,057.7 1,399.6 2,087.6 15,559.6 Stockholders' equity: Common stock, 754.6 shares issued, S0.10 par value Additional paid-in capital Retained earnings Common stock in treasury, at cost, shares of 177.7 and 157.8 Accumulated other comprehensive loss Total stockholders' equity Noncontrolling interests Total equity Total liabilities and equity 75.5 1,120.9 13.138.9 (7,762.9) (2,244.5) 4,327.9 357.6 4,685.5 21,812.6 75.5 1,177.0 12,616.5 (6,326.6) (2.612.2) 4,930.2 376.9 5,307.1 21,712.3 2017 2016 1.736.8 1,259.4 608.1 (88.4) 75.1 Companyl: Cash Flows Statements Cash Flows - Operating Activities 2018 Net earnings, including earnings attributable to redeemable and noncontrolling interests 1,701.1 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 603.6 After-tax carnings from joint ventures (85.0) Distributions of earnings from joint ventures 75.6 Stock-based compensation 95.7 Deferred income taxes 183.9 Tax benefit on exercised options (64.1) Pension and other postretirement benefit plan contribution (45.4) 35.7 Pension and other postretirement benefit plan costs 13.5 Loss (gain) from asset disposals Impairment and other charges Changes in current assets and liabilities, excluding the effects of (232.0) acquisitions and divestitures (863) Othernet 2.313.3 Net cash provided by operating activities 588.3 (84.3) 72.6 106.4 25.3 (74.6) (49.5 91.3 120.6 (94.1) (47.8) 118.1 (1482) 1072 117.0 531.1 258.2 (105.6) 2,629.8 214.7 (137.9) 2,542.8 (684.4) (712.4) (8223) (102.4) Cash Flows - Investing Activities Purchases of land, buildings, and equipment Acquisitions, net of cash acquired Investments in affiliates, net Proceeds from disposal of land, buildings, and equipment Proceeds from divestitures Exchangeable note Other, net Net cash provided (used) by investing activities 3.3 4.2 17.5 13.0 (0.5) (646.9) (729.3) (84.0) 63.9 4.4 828.5 21.1 (11.2) 93.4 27.9 (4.0) (1,602.2) Cash Flows - Financing Activities Change in notes payable Issuance of long-term debt Payment of long-term debt Proceeds from common stock issued on exercised Tax benefit on exercised options Purchases of common stock for treasury Dividends paid Distributions to noncontrolling and redeemable interest holders Other, net Net cash used by financing activities 962.4 1,072. 1 (1.000.0) 112.6 64. 1 (1,651.5) (1.135.1) (61.0) (9.1) (1,645.5) (323.8) 5 42.5 (1,000.4) 171.9 94.1 (606.7) (1.071.7) (84.3) (7.2) (2,285.6) (509.8) 2,253.2 (1.145.8) 163.7 74.6 (1,161.9) (1.017.7) (25.0) (16.1) (1,384.8) Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of year (18.5) 2.4 763.7 (8.1) 429.5 334. 2 (88.9) (533.1) 8 67.3 Cash and cash equivalents - end of year 766. 1 7 63.7 334.2