Kodak Refer to the following financial statements for Kodak: CASE 9-1 Forecasting Pro Forma Financial Statements INCOME STATEMENT For Year Ended December 31 (in millions) 20x6 20x5 20x4 Net sales...... $13,234 $13,994 $14,089 Cost of goods sold.. 8,670 8,375 8,086 Gross profit.... 4,564 5,619 6,003 Selling, general, and administrative expenses. 2,781 2,665 2,846 Research and development costs ..... 779 784 817 Other income (charges) Restructuring costs (credits) and other.. Earnings from operations.... Interest expense..... Earnings before income taxes. Provision for income taxes.. Net earnings..... 659 (44) 350 345 2,214 1,990 219 178 142 (18) 96 261 108 2,132 2,109 32 725 717 $ 76 $ 1,407 $ 1,392 BALANCE SHEET 20x6 20x5 At December 31 (in millions, except share and per share data) 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 Other long-term liabilities. 2,728 2,722 720 681 10,468 10,784 Total liabilities 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