how do you find the WACC for 2006 given the following information: Operating results 2004 2005 2006 Operating Revenues 201425 249246 248518 Plus: Other Income 1239 2817 3524 Total Revenue & Other Income 202664 252062 252042 Less: Crude Oil & Product Purchases 94672 125949 124131 Less: Production & Manufacturing 15793 18237 20079 Less: Selling, General & Administrative 9417 9793 9706 Less: Depreciation & Depletion 6642 6972 7763 Less: Exploration Expense 747 656 803 Less: Other Taxes & Duties 27849 28257 26658 Operating Income 29005 41294 42243 Less: Interest Expense 10568 8028 11081 Less: Other Non-Operating Expenses 528 543 715 Income before Taxes 17910 32723 30447 Less: Taxes 7414 12830 11747 Net Income 10496 19893 18701 Midland Balance Sheets, at Dec. 31st ($in millions) Assets: 2005 2006 cash & cash equivalents 16707 19206 restricted cash 3131 3131 notes receivables 18689 19681 inventory 6338 7286 prepaid expenses 2218 2226 total current assets 47083 51528 Investments & Advances 30140 34205 Net property, plant & equipment 156630 167350 other assets 10818 9294 Total assets 244671 262378 Liabilities & Owners' Equity: accounts payable & accrued liabilities 24562 26576 current portion of long-term debt 26534 20767 taxes payable 5723 5462 total current liabilities 56819 52805 long-term debt 82414 81078 post retirement benefit obligations 6950 9473 accrued liabilities 4375 4839 deferred taxes 14197 14179 other long-term liabilities 2423 2725 total shareholders' equity 77493 97280 total liabilities &owners' equity 244671 262378

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.4E

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how do you find the WACC for 2006 given the following information:

Operating results	2004	2005	2006
Operating Revenues	201425	249246	248518
Plus: Other Income	1239	2817	3524
Total Revenue & Other Income	202664	252062	252042
Less: Crude Oil & Product Purchases	94672	125949	124131
Less: Production & Manufacturing	15793	18237	20079
Less: Selling, General & Administrative	9417	9793	9706
Less: Depreciation & Depletion	6642	6972	7763
Less: Exploration Expense	747	656	803
Less: Other Taxes & Duties	27849	28257	26658
Operating Income	29005	41294	42243
Less: Interest Expense	10568	8028	11081
Less: Other Non-Operating Expenses	528	543	715
Income before Taxes	17910	32723	30447
Less: Taxes	7414	12830	11747
Net Income	10496	19893	18701

Midland Balance Sheets, at Dec. 31st ($in millions)

Assets:	2005	2006
cash & cash equivalents	16707	19206
restricted cash	3131	3131
notes receivables	18689	19681
inventory	6338	7286
prepaid expenses	2218	2226
total current assets	47083	51528

Investments & Advances	30140	34205
Net property, plant & equipment	156630	167350
other assets	10818	9294
Total assets	244671	262378

Liabilities & Owners' Equity:
accounts payable & accrued liabilities	24562	26576
current portion of long-term debt	26534	20767
taxes payable	5723	5462
total current liabilities	56819	52805

long-term debt	82414	81078
post retirement benefit obligations	6950	9473
accrued liabilities	4375	4839
deferred taxes	14197	14179
other long-term liabilities	2423	2725

total shareholders' equity	77493	97280
total liabilities &owners' equity	244671	262378

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