Unilate Textiles: Income Statements for Years Ending December 37 Table 2.2 ($ millions, except per share data) 2017 2018 Percentage of Percentage of Amount Total Sales Total Sales Amount 100.0% $1,435.0 00.0% $1,500.0 (1,176.7) (82.0) Net sales (1,230.0) (82.0) 18.0% Variable operating costs (82% of sales) $ 270.0 18.0% $ 258.3 Gross profit 90.0) ( 6.0) 85.0) ( 5.9) ) Fixed operating costs, except depreciation 12.0% 173.3 12.1% Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 180.0 50.0) ( 3.3) 40.0) ( 2.8) Depreciation Net operating income (NOI) = $ 130.0 8.7% 133.3 9.3% ) Earnings before interest and taxes (EBIT) 40.0) ( 2.7) 35.0) ( 2.4) Interest 90.0 6.0% 98.3 6.9% Earnings before taxes (EBT) 39.3) Taxes (40%) 36.0) ( 2.4) ( 2.7) Net income 54.0 3. 6% $ 59.0 4.1% Preferred dividends 0.0 0.0 Earnings available to common stockholders (EAC) 59.0 Common dividends ( 29.0) 27.0) Addition to retained earnings $ 25.0 $ 32.0 Per share data (25,000,000 shares): Earnings per share = (EAC)/Shares $ Dividends per share = (Common dividends)/Shares S 2.36 $ 1.16 $ "The parentheses indicate a negative value. 1.08 d erfl emit nitrilo counting and the matching principle. That is, revenues recognized when they are earned, not when the cash eceived, and expenses are recognized when they are the asset is originally purchased. However, beca urred, not when the cash is paid. As a result, not all of asset is used to generate revenues and its life amounts shown on the income statement represent for more than one year, depreciation is the flows. However, a that is used to match the expense associate theTE ble 2. 1 Unilate Textiles : December 31 Balance Sheets IS millions , except per- share data ) 2078 2017 Percentage of Percentage of Amount Total Assets Amount Total Assets Assets Cash and equivalents $ 15.0 1.8% $ 40. 01 5.3% Accounts receivables 180.0 21.3 160.0 21.3 Inventory 270.0 32.0 200.0 26.7 Total current assets $465. 0 55. 0% $40 0.0 53.3% Net plant and equipment ?" 380.0 45.0 350.0 46.7 Total assets $845.0 100 . 0% 5750.01 100. 090 Liabilities and Equity Accounts payable $ 30.0 3. 6%/0 $ 15.0 2.0% Accruals 60. 0 7.1 155.0 7.3 Notes payable 40.0 4.7 4.7 Total current liabilities $130. 0 15.4% $105 .0 14 .0% Long-term bonds 300. 0 35.5 255.0 34.0 Total liabilities ( debt ) $430. 0 150 . 90/ $360. 0 \\48.0% Common stock ( 25 million shares) 130.0 15.4 130.0 17.3 Retained earnings 285.0 33 .7 260. 0 34.7 Total common equity $475 .0 49 .1% 390. 0 52.0 Total liabilities and equity $845.0 100. 0% $750. 0 100.0%/0 Book value per share = ( Common equity ) / Shares $16.60 $15.60 Market value per share ( stock price ) $23.00 $25.00 Additional Information Net working capital = Current assets - Current liabilities $335.0 $295.0 Net worth = Total assets - Total liabilities 475.0 390.0 *Breakdown of net plant and equipment account :" $600. 0 Gross plant and equipment $680. 0 ( 250.0 ) Less : Accumulated depreciation ( 30 0.0 ) 5380. 0 $350. 0 Net plant and equipment debt . However , because the firm probably would not be example , accounts payable generally must be pat able to sell all of the assets at the values shown on the 30 to 45 days , accruals are payable within 60 to balance sheet , common stockholders actually would re - and so on , down to the stockholders' equity ceive some amount different ( higher or lower ) from that which represent ownership that never needs to ! shown in the equity section if the firm were actually lig - Often assets , liabilities , and equity are repo dollars and as a percentage of total assets