12. What was interest expense for the years 2019, 2018 and 2017?

13. In 2019, what was the total amount of cash dividends paid on common stock and preferred stock?

14. Did the auditors report express any reservations about the financial statements? Any interesting audit observation that you may observe? -Explain.

15. Did the company present a single statement of comprehensive income or two separate statements of income and comprehensive income in 2019? What are the numbers? What was other comprehensive income adjustments with net income to arrive at comprehensive income in 2019?

16. Based on 2019 balance sheet, calculate the net assets of the company. What is the proportion of total assets financed by debt capital and equity capital?

WHIRLPOOL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) Year Ended December 31, (Millions of dollars, except per share data) 2019 $ 20,419 $ 2018 2017 21,037 $ 21,253 16,886 3,533 2,142 69 188 17,500 3,537 2,189 75 247 747 17,651 3,602 2,112 79 275 (437) 1,571 279 1,136 Net sales Expenses Cost of products sold Gross margin Selling, general and administrative Intangible amortization Restructuring costs Impairment of goodwill and other intangibles (Gain) loss on sale and disposal of businesses Operating profit Other (income) expense Interest and sundry (income) expense Interest expense Earnings (loss) before income taxes Income tax expense Net earnings (loss) Less: Net earnings (loss) available to non-controlling interests Net earnings (loss) available to Whirlpool Per share of common stock Basic net earnings (loss) available to Whirlpool Diluted net earnings (loss) available to Whirlpool Weighted average shares outstanding (in millions) Basic Diluted (168) 187 1,552 354 1,198 14 1,184 $ 108 192 (21) 138 (159) 24 87 162 887 550 337 (13) 350 $ (183) $ 4.78 $ $ 18.60 $ 18.45 $ (2.72) $ (2.72) $ 4.70 67.2 63.7 64.2 73.3 74.4 67.2 The accompanying notes are an integral part of these Consolidated Financial Statements. WHIRLPOOL CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, (Millions of dollars) 2018 2019 1,198 $ 2017 337 Net earnings (loss) $ (159) $ 54 (272) 32 71 77 (84) (80) 88 (17) 107 (30) 6 Other comprehensive income (loss), before tax: Foreign currency translation adjustments Derivative instruments: Net gain (loss) arising during period Less: reclassification adjustment for gain (loss) included in net earnings (loss) Derivative instruments, net Marketable securities: Net gain (loss) arising during period Marketable securities, net Defined benefit pension and postretirement plans: Prior service (cost) credit arising during period Net gain (loss) arising during period Less: amortization of prior service credit (cost) and actuarial (loss) Defined benefit pension and postretirement plans, net Other comprehensive income (loss), before tax Income tax benefit (expense) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax 6 9 (6) (49) 52 (5) (102) (59) (48) (350) (16) (51) (52) (15) 19 89 (12) 77 $ 5 (345) $ 50 69 $ $ 1,275 $ (504) $ 406 Comprehensive income (loss) Less: comprehensive income (loss), available to noncontrolling interests Comprehensive income (loss) available to Whirlpool 14 1,261 $ 26 (530) $ (13) 419 $ The accompanying notes are an integral part of these Consolidated Financial Statements. WHIRLPOOL CORPORATION CONSOLIDATED BALANCE SHEETS At December 31, (Millions of dollars) 2019 2018 $ 1,952 $ 2,198 2,438 810 1,498 2,210 2,533 839 818 7,898 3,414 7,398 3,301 921 2,440 2,225 2,238 358 $ 18,881 $ 2,451 2,296 1,989 299 18,347 $ Assets Current assets Cash and cash equivalents Accounts receivable, net of allowance of $132 and $136, respectively Inventories Prepaid and other current assets Assets held for sale Total current assets Property, net of accumulated depreciation of $6,444 and $6,190, respectively Right of use assets (leased assets) Goodwill Other intangibles, net of accumulated amortization of $593 and $527, respectively Deferred income taxes Other noncurrent assets Total assets Liabilities and stockholders' equity Current liabilities Accounts payable Accrued expenses Accrued advertising and promotions Employee compensation Notes payable Current maturities of long-term debt Other current liabilities Liabilities held for sale Total current liabilities Noncurrent liabilities Long-term debt Pension benefits Postretirement benefits Lease liabilities Other noncurrent liabilities Total noncurrent liabilities Stockholders' equity Common stock, $1 par value, 250 million shares authorized, 112 million shares issued, and 63 million and 64 million shares outstanding, respectively Additional paid-in capital Retained earnings ted other comprehensive Treasury stock, 49 million and 48 million shares, respectively Total Whirlpool stockholders' equity Non-controlling interests Total stockholders' equity Total liabilities and stockholders' equity 4,547 $ 652 949 450 294 559 918 4,487 690 827 393 1,034 947 811 489 9,678 8,369 4,046 637 318 4,140 542 322 778 612 6,394 463 5,464 112 2,806 7,870 (2,618) (4,975) 3,195 923 4,118 $ 18,881 112 2,768 6,933 (2,695) (4,827) 2,291 914 3,205 18,347 The accompanying notes are an integral part of these Consolidated Financial Statements. WHIRLPOOL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (Millions of dollars) 2019 2018 2017 $ 1,198 $ (159) $ 337 587 654 645 747 (437) 79 73 (87) (39) 140 118 22 (116) (81) 106 (181) 1,230 210 12 162 (67) (434) 44 (83) 1,229 160 (229) 1 80 76 (230) 239 (58) 36 99 1,264 (532) 1,174 (590) 160 Operating activities Net earnings (loss) Adjustments to reconcile net earnings (loss) to cash provided by (used in) Operating activities Depreciation and amortization Impairment of goodwill and other intangibles (Gain) loss on sale and disposal of businesses Changes in assets and liabilities: Accounts receivable Inventories Accounts payable Accrued advertising and promotions Accrued expenses and current liabilities Taxes deferred and payable, net Accrued pension and postretirement benefits Employee compensation Other Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of assets and business Purchase of held-to-maturity securities Proceeds from held-to-maturity securities Investment in related businesses Other Cash provided by (used in) investing activities Financing activities Net proceeds from borrowings of long-term debt Repayments of long-term debt Net proceeds (repayments) from short-term borrowings Dividends paid Repurchase of common stock Purchase of non-controlling interest shares Common stock issued Other Cash used in financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Increase 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 Supplemental disclosure of cash flow information Cash paid for interest Cash paid for income taxes 60 (25) (4) (399) (684) 61 (173) 113 (35) (3) (721) (6) 636 700 705 691 (949) (386) (564) (723) 653 367 (305) (306) (312) (148) (1,153) (750) (41) (5) 8 17 34 (7) (7) (14) (1,424) (518) (553) (28) (67) 63 414 245 53 1,538 1,293 1,240 $ 1,952 $ 1,538 $ 1,293 $ $ 194 $ 469 $ 183 $ 206 $ 181 311 WHIRLPOOL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) Year Ended December 31, (Millions of dollars, except per share data) 2019 $ 20,419 $ 2018 2017 21,037 $ 21,253 16,886 3,533 2,142 69 188 17,500 3,537 2,189 75 247 747 17,651 3,602 2,112 79 275 (437) 1,571 279 1,136 Net sales Expenses Cost of products sold Gross margin Selling, general and administrative Intangible amortization Restructuring costs Impairment of goodwill and other intangibles (Gain) loss on sale and disposal of businesses Operating profit Other (income) expense Interest and sundry (income) expense Interest expense Earnings (loss) before income taxes Income tax expense Net earnings (loss) Less: Net earnings (loss) available to non-controlling interests Net earnings (loss) available to Whirlpool Per share of common stock Basic net earnings (loss) available to Whirlpool Diluted net earnings (loss) available to Whirlpool Weighted average shares outstanding (in millions) Basic Diluted (168) 187 1,552 354 1,198 14 1,184 $ 108 192 (21) 138 (159) 24 87 162 887 550 337 (13) 350 $ (183) $ 4.78 $ $ 18.60 $ 18.45 $ (2.72) $ (2.72) $ 4.70 67.2 63.7 64.2 73.3 74.4 67.2 The accompanying notes are an integral part of these Consolidated Financial Statements. WHIRLPOOL CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, (Millions of dollars) 2018 2019 1,198 $ 2017 337 Net earnings (loss) $ (159) $ 54 (272) 32 71 77 (84) (80) 88 (17) 107 (30) 6 Other comprehensive income (loss), before tax: Foreign currency translation adjustments Derivative instruments: Net gain (loss) arising during period Less: reclassification adjustment for gain (loss) included in net earnings (loss) Derivative instruments, net Marketable securities: Net gain (loss) arising during period Marketable securities, net Defined benefit pension and postretirement plans: Prior service (cost) credit arising during period Net gain (loss) arising during period Less: amortization of prior service credit (cost) and actuarial (loss) Defined benefit pension and postretirement plans, net Other comprehensive income (loss), before tax Income tax benefit (expense) related to items of other comprehensive income (loss) Other comprehensive income (loss), net of tax 6 9 (6) (49) 52 (5) (102) (59) (48) (350) (16) (51) (52) (15) 19 89 (12) 77 $ 5 (345) $ 50 69 $ $ 1,275 $ (504) $ 406 Comprehensive income (loss) Less: comprehensive income (loss), available to noncontrolling interests Comprehensive income (loss) available to Whirlpool 14 1,261 $ 26 (530) $ (13) 419 $ The accompanying notes are an integral part of these Consolidated Financial Statements. WHIRLPOOL CORPORATION CONSOLIDATED BALANCE SHEETS At December 31, (Millions of dollars) 2019 2018 $ 1,952 $ 2,198 2,438 810 1,498 2,210 2,533 839 818 7,898 3,414 7,398 3,301 921 2,440 2,225 2,238 358 $ 18,881 $ 2,451 2,296 1,989 299 18,347 $ Assets Current assets Cash and cash equivalents Accounts receivable, net of allowance of $132 and $136, respectively Inventories Prepaid and other current assets Assets held for sale Total current assets Property, net of accumulated depreciation of $6,444 and $6,190, respectively Right of use assets (leased assets) Goodwill Other intangibles, net of accumulated amortization of $593 and $527, respectively Deferred income taxes Other noncurrent assets Total assets Liabilities and stockholders' equity Current liabilities Accounts payable Accrued expenses Accrued advertising and promotions Employee compensation Notes payable Current maturities of long-term debt Other current liabilities Liabilities held for sale Total current liabilities Noncurrent liabilities Long-term debt Pension benefits Postretirement benefits Lease liabilities Other noncurrent liabilities Total noncurrent liabilities Stockholders' equity Common stock, $1 par value, 250 million shares authorized, 112 million shares issued, and 63 million and 64 million shares outstanding, respectively Additional paid-in capital Retained earnings ted other comprehensive Treasury stock, 49 million and 48 million shares, respectively Total Whirlpool stockholders' equity Non-controlling interests Total stockholders' equity Total liabilities and stockholders' equity 4,547 $ 652 949 450 294 559 918 4,487 690 827 393 1,034 947 811 489 9,678 8,369 4,046 637 318 4,140 542 322 778 612 6,394 463 5,464 112 2,806 7,870 (2,618) (4,975) 3,195 923 4,118 $ 18,881 112 2,768 6,933 (2,695) (4,827) 2,291 914 3,205 18,347 The accompanying notes are an integral part of these Consolidated Financial Statements. WHIRLPOOL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (Millions of dollars) 2019 2018 2017 $ 1,198 $ (159) $ 337 587 654 645 747 (437) 79 73 (87) (39) 140 118 22 (116) (81) 106 (181) 1,230 210 12 162 (67) (434) 44 (83) 1,229 160 (229) 1 80 76 (230) 239 (58) 36 99 1,264 (532) 1,174 (590) 160 Operating activities Net earnings (loss) Adjustments to reconcile net earnings (loss) to cash provided by (used in) Operating activities Depreciation and amortization Impairment of goodwill and other intangibles (Gain) loss on sale and disposal of businesses Changes in assets and liabilities: Accounts receivable Inventories Accounts payable Accrued advertising and promotions Accrued expenses and current liabilities Taxes deferred and payable, net Accrued pension and postretirement benefits Employee compensation Other Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of assets and business Purchase of held-to-maturity securities Proceeds from held-to-maturity securities Investment in related businesses Other Cash provided by (used in) investing activities Financing activities Net proceeds from borrowings of long-term debt Repayments of long-term debt Net proceeds (repayments) from short-term borrowings Dividends paid Repurchase of common stock Purchase of non-controlling interest shares Common stock issued Other Cash used in financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Increase 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 Supplemental disclosure of cash flow information Cash paid for interest Cash paid for income taxes 60 (25) (4) (399) (684) 61 (173) 113 (35) (3) (721) (6) 636 700 705 691 (949) (386) (564) (723) 653 367 (305) (306) (312) (148) (1,153) (750) (41) (5) 8 17 34 (7) (7) (14) (1,424) (518) (553) (28) (67) 63 414 245 53 1,538 1,293 1,240 $ 1,952 $ 1,538 $ 1,293 $ $ 194 $ 469 $ 183 $ 206 $ 181 311