Exhibit X1
Proforma Balance Sheet - Beaver Corporation, Dec 31,1982
Without Leverage, Long term Debt is 0
Assets $ Millions Liability & Equity $Millions
Cash 11 Bank debt 20
Treasury Bills 8 A/P 40.7
A/R 20.8 Other Current 10
Inventory 50
Current Assets 90 Current Liabilities 70.7
P&E net 222 Long Term Debt 0
Other long term 28
Long Term Assets 250 Shareholder Equity 260.3
Total Assets 339.8 Total Liabilities and Shareholder Equity 339.8
Foot Notes
Changes in Assets
1. Cash – Reduced bank balance from $ 20 M to $9M & cash buffer of $2M = Total $11M
2. Treasury Bills – Reduced excess liquidity from $20 M to $8 M
3. A/R - 15 Days of A/R outstanding ( Taking benefit of 10 day discount period and 5 days for processing)
a. A/R with 61.4 Days Outstanding = 85
b. A/R with 15 Days Outstanding = (85*15/61.4) = $ 20.76 M
4. PPE - Increased by $9M due to new long term projects
a. ($ 43M-$33.8M = $ 9M )
5. Other Items – No Change
Changes in Liabilities & Shareholders’ Equity
1. Bank Debt, A/P and Other liabilities- remains the same
2. Shareholders Equity – Decreased by $ 71.24
3. Wealth redistributed to Shareholders by
Equity buy back of $ 45 M (2.64 M shares)
4. Total Dividends worth $26.24 M ( $ 3.56 /Share)
Exhibit X2
Proforma Balance Sheet - Beaver Corporation, Dec 31,1982
With Leverage, Long term Debt is $ 75M
Assets $ Millions Liability & Equity $Millions
Cash 11 Bank debt 20
Treasury Bills 8 A/P 40.7
A/R 20.8 Other Current 10
Inventory 50
Current Assets 90 Current Lia ...