XYZ CORP BALANCE SHEET
Assets Liabilities and equity
Short-term assets Short-term liabilities
Cash 1,000 Accounts payable 1,500
Marketable securities 1,500 Taxes payable 200
Inventories 1,500 Current portion of long-term debt 1,000
Accounts receivable 3,000 Short-term debt 500
Total CAs Total Short-term liabilities
Fixed assets Long term debt 1,500
Land 150 Pension liabilities 800
Plnt, property and equipment at cost 2,000
Mnus accumulated depreciation (700) Preferred stock 200
Net fixed assets 1,450 Minority interest 100
Goodwill 1,000 Equity
Stock at par 1,000
Discountinued operations 500 Accumulated retained earnings 3,500
Stock repurchse (350)
Total assets 9,950 Total liabilities and equity 9,950
4,150
XYZ CORP BALANCE SHEET The
balance sheet items are categorized to main groups by their economic nature
Assets Liabilities and equity
Excess financial assets Operational liabilities (negative working capital)
Cash 1,000 Accounts payable
Marketable securities 1,500 Taxes payable
Total excess financial assets 2,500 Total operating liabilities
Net fixed assets Financial liabilities
Land 150 Current portion of long-term debt
Plant, property and equipment at cost 2,000 Short-term debt
Mnus accumulated depreciation (700) Long term debt
Net fixed assets 1,450 Pension liabilities
Preferred stock
Working capital Minority interest
Inventories 1,500 Total fiancial liabilities
Accounts receivable 3,000
WC 4,500 Equity
Goodwill 1,000 Stock at par
Accumulated retained earnings
Excess assets Stock repurchse
Discountinued operations 500 Total equity
Total assets 9,950 Total liabilities and equity
The
mic nature
ing capital)
1,500
200
1,700
1,000
500
1,500
800
200
100
4,100
1,000
3,500
(350)
4,150
9,950
XYZ CORP
OPERATIONAL BALANCE SHEET
Operational current liabilities moved to left side, all financial liabilities on right side
Assets
Net fixed assets 1,450
Working Capital
Inventories 1,500
Accounts receivable 3,000
Minus accounts payable (1,500)
Minus taxes payable (200)
Net working capital 2,800
Goodwill 1,000
Total net opretional assets 5,250
Excess assets 500
Total assets 5,750
YZ CORP
SHEET
moved to left side, all financial liabilities on right side
Liabilities and equity
Non Financial debt
Financial liabilities 4,100
Minus excess financial assets (2,500)
Net financial debt 1,600
Equity 4,150
Total liabilities and equity 5,750
CATERPILLAR INC., BALANCE SHEET
December 2019 ( Dollar in Millions)
Assets
Current assets
Cash and short-term instruments 8,284
Receivable-trade and other 8,568
Receivable-finance 9,336
Prepaid expense and other assets 1,739
Inventories 11,266
Total current assets 39,193
Property, plant and equipment, net 12,904
Long-term receivables-trade and other 1,193
Long-term receivables-finance 12,651
Noncurrent deferred and refundable income taxes 1,411
Intangible assets 1,565
Goodwill 6,196
Other assets 3,340
Total assets 78,453
EET 31
r 2019 ( Dollar in Millions)
Liabilities
Current liabilities
Accounts payable 5,957
Accrued expense 3,750
Accrued wages, salaries and employee benefits 1,629
Customer advances 1,187
Dividends payable 567
Other current liabilities 2,155
Machinery, energy and transportation 21
Financial products 11,355
Total current liabilities 26,621
Long-term debt due after one year:
Machinery, energy & transportation 9,141
Financial products 17,140
Liability for postemployment benefits 6,599
Other liabilities 4,323
Total liabilities 63,824
Total stockholders' equity 14,629
Total liabilities and stockholders' equity 78,453
CATERPILLAR INC., BALANCE SHEET
December 2019 ( Dollar in Millions)
Enterprise value (accounting values)
Property, plant and equipment, net 12,904
Net working capital 33,620
Goodwill and intangibles 7,761
Accounting enterprise value (invested capital) 54,285
Other assets 3,340
Total 57,625
Where net working capital is:
Receivable-trade and other 8,568
Receivable-finance 9,336
Prepaid expense and other assets 1,739
Inventories 11,266
Long-term receivables-trade and other 1,193
Long-term receivables-finance 12,651
Noncurrent deferred and refundable income taxes 1,411
Accounts payable (5,957)
Accrued expense (3,750)
Accrued wages, salaries and employee benefits (1,629)
Customer advances (1,187)
Machinery, energy and transportation (21)
Net working capital 33,620
ET 31
019 ( Dollar in Millions)
Net financial debt
Short-term financial products 11,355
Dividends payable 567
Other current liabilities 2,155
Machinery, energy & transportation 9,141
Financial products 17,140
Liability for postemployment benefits 6,599
Other liabilities 4,323
Less cash and short-term instruments (8,284)
Net financial debt 42,996
Equity 14,629
Total 57,625
CATERPILLAR VALUATION OF EQUITY: EFFICIENT MARKETS APPROACH
Formula in cell $B$6 is =E7+E6-B7
Enterprise value efficient market approach 121,273
Other assets 3,340
Total 124,613
QUITY: EFFICIENT MARKETS APPROACH
Shares outstnding (Dec. 2019, M) 552.66
Share price 147.68
Market capitalization ($M)=equity value 81,617
Net financial debt 42,996
Equity 81,617
Total 124,613
CATERPILLAR INC., ENTERPRISE VALUE BALANCE SHEET Right-hnd side revalued at market values
Left-hand side brought into balance with right-hand si
adjusting long-term assets
Enterprise value
Net fixed assets (Market vlue) 79,892
Net working capital 33,620
Goodwill and intangibles 7,761
Enterprise value efficient markets approach 121,273
Other assets 3,340
Total 124,613
NCE SHEET Right-hnd side revalued at market values
Left-hand side brought into balance with right-hand side by
g long-term assets
Shares outstnding (Dec. 2019, M) 552.66
Share price 147.68
Market capitalization ($M)=equity value 81,617
Net financial debt 42,996
Equity 81,617
Total 124,613
Pricing:
No Units $450
5 ###
10 $452
15 $453
20 $454
25 $455