On January 1, 2018 (the first day of last year) Phillips 66 purchased a pipeline for $340 and spend $60 in testing and upgrading the pipeline to make it suitable for use. Phillips 66 expects to use the warehouse for the next 20 years, at which time it will have a residual value of $90. Phillips 66 accounts for such assets using the double declining balance method.
All entries in the year ended December 31, 2018 were correctly made, however, no entry was made in the year ended December 31, 2019. Ignore tax effects.
If needed adjustments were made to correct the error, what would be the reported amounts (not just the effect) for:
a) Net Income attributable to Phillips 66 for the year ended December 31, 2019? __________
b) Total Equity as of December 31, 2019? __________
c) Net cash provided by operating activities for the year ended December 31, 2019? __________
Consolidated Statement of Cash Flows Phillips 66 Millions of Dollars 2018 2019 2017 3.377 5,873 5,248 1,356 8 1,341 861 23 183 (143) (20) 23 252 221 (19) 1,318 24 22 (1,886) (516) (15) (423) (186) 16 132 Years Ended December 31 Cash Flows Erom Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization Impairments Accretion on discounted liabilities Deferred income taxes Undistributed equity earnings Net gain on dispositions Gain on consolidation of business Other Working capital adjustments Accounts and notes receivable Inventories Prepaid expenses and other current assets Accounts payable Taxes and other accruals Net Cash Provided by Operating Activities Cash Flows From Investing Activities Capital expenditures and investments Proceeds from asset dispositions Advances/loans-related parties Collection of advances/loans-related parties Restricted cash received from consolidation of business Other Net Cash Used in Investing Activities (2,308) (204) (14) 1,941 (245) 4.808 1,320 (202) (113) (1,546) 268 7,573 (1,182) (176) 104 1,153 16.3 3,648 (2,639) 57 (3.873) 157 (98) 95 (1,832) 86 (10) 326 31 (3.688) 112 (2,471) 318 (34) (1,146) 2,184 Cash Flows From Financing Activities Issuance of debt Repayment of debt Issuance of common stock Repurchase of common stock Dividends paid on common stock Distributions to noncontrolling interests Net proceeds from issuance of LP common units Other Net Cash Used in Financing Activities Effect of Exchange Rate Changes 1,783 (1,307) 32 (1.650) (1.570) (241) 173 269 (2.511) 39 (4,645) (1,436) (207) 128 (86) (5,167) 3,508 (3,678) 35 (1,590) (1,395) (120) 1,205 (76) (2,111) (14) (35) 17 (1.405) (100) 408 Net Change in Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash at beginning of year Cash, Cash Equivalents and Restricted Cash at End of Year $ See Noter Consolidated Financial Statemente 3,019 1.614 3,119 3,019 2,711 3,119 Consolidated Statement of Income Phillips 66 Millions of Dollars 2018 2019 2017 Years Ended December 31 Revenues and Other Income Sales and other operating revenues* Equity in earnings of affiliates Net gain on dispositions Other income Total Revenues and Other Income 107,293 2.127 20 119 109,559 111,461 2,676 19 61 114,217 102,354 1,732 15 521 104,622 95.529 5.074 1.681 1.341 861 409 97,930 4,880 1,677 1,356 8 425 23 504 79,409 4,699 1,695 1,318 24 13,462 22 438 23 458 Costs and Expenses Purchased crude oil and products (*) Operating expenses Selling, general and administrative expenses Depreciation and amortization Impairments Taxes other than income taxes Accretion on discounted liabilities Interest and debt expense Foreign currency transaction (gains) losses Total Costs and Expenses Income before income taxes Income tax expense (benefit) Net Income Less: net income attributable to noncontrolling interests Net Income Attributable to Phillips 66 $ See Notes to Consolidated Financial Statemente 5 105,381 4,178 801 3.377 301 3.076 106,772 7,445 1,572 5,873 278 5,595 101,067 3,555 (1,693) 5,248 142 5,106 *) This is Phillips 66's name for Cost of Goods Sold Note 5-Inventories Inventories at December 31 consisted of the following: Millions of Dollars 2019 2018 Crude oil and petroleum products Materials and supplies 3.452 324 3.776 3,238 305 3,543 $ Inventories valued on the LIFO basis totaled $3,331 million and $3,123 million at December 31, 2019 and 2018, respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $4,300 and $2,900 at December 31, 2019 and 2018, respectively. Consolidated Balance Sheet Phillips 66 Millions of Dollars 2019 2018 1,614 3,019 At December 31 Assets Cash and cash equivalents Accounts and notes receivable (net of allowances of $41 million in 2019 and $22 million in 2018) Accounts and notes receivable-related parties Inventories Prepaid expenses and other current assets Total Current Assets Investments and long-term receivables Net properties, plants and equipment Goodwill Intangibles Other assets Total Assets 7,376 1,134 3,776 495 14,395 14,571 23,786 3,270 869 1,829 58,720 5,414 759 3,543 474 13,209 14,421 22,018 3,270 869 515 54,302 Liabilities Accounts payable Accounts payable-related parties Short-term debt Accrued income and other taxes Employee benefit obligations Other accruals Total Current Liabilities Long-term debt Asset retirement obligations and accrued environmental costs Deferred income taxes Employee benefit obligations Other liabilities and deferred credits Total Liabilities 8,043 532 547 979 710 835 11,646 11,216 638 5,553 1,044 1,454 31,551 6,113 473 67 1,116 724 442 8,935 11,093 624 5,275 867 355 27,149 6 20,301 19,873 Equity Common stock (2,500,000,000 shares authorized at $0.01 par value) Issued (2019-647,416,633 shares: 2018-645,691,761 shares) Par value Capital in excess of par Treasury stock (at cost: 2019-206,390,806 shares: 2018- 189,526,331 shares) Retained earings Accumulated other comprehensive loss Total Stockholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity See Noter Consolidated Financial Statemente (16,673) 22,064 (788) 24,910 2,259 27,169 58,720 (15,023) 20,489 (692) 24,653 2,500 27,153 54,302 Consolidated Statement of Cash Flows Phillips 66 Millions of Dollars 2018 2019 2017 3.377 5,873 5,248 1,356 8 1,341 861 23 183 (143) (20) 23 252 221 (19) 1,318 24 22 (1,886) (516) (15) (423) (186) 16 132 Years Ended December 31 Cash Flows Erom Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization Impairments Accretion on discounted liabilities Deferred income taxes Undistributed equity earnings Net gain on dispositions Gain on consolidation of business Other Working capital adjustments Accounts and notes receivable Inventories Prepaid expenses and other current assets Accounts payable Taxes and other accruals Net Cash Provided by Operating Activities Cash Flows From Investing Activities Capital expenditures and investments Proceeds from asset dispositions Advances/loans-related parties Collection of advances/loans-related parties Restricted cash received from consolidation of business Other Net Cash Used in Investing Activities (2,308) (204) (14) 1,941 (245) 4.808 1,320 (202) (113) (1,546) 268 7,573 (1,182) (176) 104 1,153 16.3 3,648 (2,639) 57 (3.873) 157 (98) 95 (1,832) 86 (10) 326 31 (3.688) 112 (2,471) 318 (34) (1,146) 2,184 Cash Flows From Financing Activities Issuance of debt Repayment of debt Issuance of common stock Repurchase of common stock Dividends paid on common stock Distributions to noncontrolling interests Net proceeds from issuance of LP common units Other Net Cash Used in Financing Activities Effect of Exchange Rate Changes 1,783 (1,307) 32 (1.650) (1.570) (241) 173 269 (2.511) 39 (4,645) (1,436) (207) 128 (86) (5,167) 3,508 (3,678) 35 (1,590) (1,395) (120) 1,205 (76) (2,111) (14) (35) 17 (1.405) (100) 408 Net Change in Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash at beginning of year Cash, Cash Equivalents and Restricted Cash at End of Year $ See Noter Consolidated Financial Statemente 3,019 1.614 3,119 3,019 2,711 3,119 Consolidated Statement of Income Phillips 66 Millions of Dollars 2018 2019 2017 Years Ended December 31 Revenues and Other Income Sales and other operating revenues* Equity in earnings of affiliates Net gain on dispositions Other income Total Revenues and Other Income 107,293 2.127 20 119 109,559 111,461 2,676 19 61 114,217 102,354 1,732 15 521 104,622 95.529 5.074 1.681 1.341 861 409 97,930 4,880 1,677 1,356 8 425 23 504 79,409 4,699 1,695 1,318 24 13,462 22 438 23 458 Costs and Expenses Purchased crude oil and products (*) Operating expenses Selling, general and administrative expenses Depreciation and amortization Impairments Taxes other than income taxes Accretion on discounted liabilities Interest and debt expense Foreign currency transaction (gains) losses Total Costs and Expenses Income before income taxes Income tax expense (benefit) Net Income Less: net income attributable to noncontrolling interests Net Income Attributable to Phillips 66 $ See Notes to Consolidated Financial Statemente 5 105,381 4,178 801 3.377 301 3.076 106,772 7,445 1,572 5,873 278 5,595 101,067 3,555 (1,693) 5,248 142 5,106 *) This is Phillips 66's name for Cost of Goods Sold Note 5-Inventories Inventories at December 31 consisted of the following: Millions of Dollars 2019 2018 Crude oil and petroleum products Materials and supplies 3.452 324 3.776 3,238 305 3,543 $ Inventories valued on the LIFO basis totaled $3,331 million and $3,123 million at December 31, 2019 and 2018, respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $4,300 and $2,900 at December 31, 2019 and 2018, respectively. Consolidated Balance Sheet Phillips 66 Millions of Dollars 2019 2018 1,614 3,019 At December 31 Assets Cash and cash equivalents Accounts and notes receivable (net of allowances of $41 million in 2019 and $22 million in 2018) Accounts and notes receivable-related parties Inventories Prepaid expenses and other current assets Total Current Assets Investments and long-term receivables Net properties, plants and equipment Goodwill Intangibles Other assets Total Assets 7,376 1,134 3,776 495 14,395 14,571 23,786 3,270 869 1,829 58,720 5,414 759 3,543 474 13,209 14,421 22,018 3,270 869 515 54,302 Liabilities Accounts payable Accounts payable-related parties Short-term debt Accrued income and other taxes Employee benefit obligations Other accruals Total Current Liabilities Long-term debt Asset retirement obligations and accrued environmental costs Deferred income taxes Employee benefit obligations Other liabilities and deferred credits Total Liabilities 8,043 532 547 979 710 835 11,646 11,216 638 5,553 1,044 1,454 31,551 6,113 473 67 1,116 724 442 8,935 11,093 624 5,275 867 355 27,149 6 20,301 19,873 Equity Common stock (2,500,000,000 shares authorized at $0.01 par value) Issued (2019-647,416,633 shares: 2018-645,691,761 shares) Par value Capital in excess of par Treasury stock (at cost: 2019-206,390,806 shares: 2018- 189,526,331 shares) Retained earings Accumulated other comprehensive loss Total Stockholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity See Noter Consolidated Financial Statemente (16,673) 22,064 (788) 24,910 2,259 27,169 58,720 (15,023) 20,489 (692) 24,653 2,500 27,153 54,302
