Homework: Do a Sources and Uses and then an Analysis Table 5-2 Carter Chemical Company: Balance Sheet as of December 31 (Millions of Dollars) Assets 2012 2011 Liabilities and Equity 2012 2011 Cash Marketable Securities Accounts Receivable Inventories Accounts Payable Notes Payable Accrued Wages Accrued Income Taxes 30 25 315 215 610 100 10 130 300 300 Total Current Assets Total Current Liabilities 1,800 500 1,300 First Mortgage Bonds Debentures Gross Fixed Assets 1,470 400 1,070 520 Gross Accumulated Depreciation 300 Net Fixed Assets Total Long-Term Debt Stockholders Equity Common Stock (50,000,000 shares, $1 par) Paid-In Capital Retained Earnings 100 730 880 1,680 100 Total Stockholders' Equity (Common Net Worth) Total Liabilities and Equity 900 Total Assets 2,000 1,680 2,000 Table 5-1 Carter Chemical Company Income Statement for Year Ending December 31 (Millions of Dollars, Except per-Share Date) 2012 2011 Net Sales 2413 437 Less: Cost of goods sold Gross profit Less: Other operating expenses 100 Depreciationi Selling General and administrative Lease payments on buildings Earnings before interest and axes (EBIT 20 35 28 264 28 266 Less: Interest expense Interest on notes payable Interest on first mortgage bonds Interest on debentures 42 18 200 Earnings before taxes (EBT) Less: Federal and state taxes (40%) Net income available ot common stockholders 217 87 130 120