utah construction & mining co and subsidiaries consolidated balance sheets — october 31 assets ost which approximates ma vable from operations f average cost or market current assets cash marketable securiti accounts and note inventories at the i mining construction prepaid expenses total current assets investments affiliated companies note 1 equity in joint ventures and limited partnership land and real estate — real estate held for development and sale land held for investment improved real estate held for investment less accumu lated depreciation of 2,467,310 in 1968 and 2,292,151 in 1967 other assets long-term receivables other construction and mining equipment and facilities at cost construction equipment and facilities mining lands leases and development costs mining equipment and facilities less — accumulated depreciation and depletion note 4 ... auditors report to the shareholders and board of directors utah consiruction & mining co we have examined the consolidated balance sheeis of utah construction & mining co a delaware corporation and subsidiaries as of october 31 1968 and 1967 and the related statements of income capital surplus earned surplus and sources and applications of funds for each of the years then ended our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the consolidated financial statements but were furnished with reports of other public accountants thereon and applications of funds present fairly the financial position of utah construction & mining co and sub sidiaries as of october 31 1968 and 1967 and the results of their operations and the sources and applications of funds for each of the years then ended in conformity with generally accepted accounting principles liabilities and capital current liabilities : bank loans notes and contracts payable and current por tion of long-term liabilities accounts payable accrued liabilities accrued income taxes note 5 total current liabilities long-term liabilities net of current portion notes 3 and 6 : unsecured assessment liens purchase money obligations and other notes secured only by related land and real estate reserves and other deferred income taxes note 5 other contingent liabilities and commitments nate 8 stockholders investment preferred stock without par value authorized 1,000,000 shares issued — none common stock par value 2 per share note 3 — authorized 20,000,000 shares in 1968 and 10,000,000 shares in 1967 issued 4,304,237 shares in 1968 and 4,304,206 in 1967 capital surplus earned surplus including equity in undistributed earnings of affiliates notes 1 and 6 treasury stock at cost — 2,267 shares in 1968 and 3,967 shares in 1 967 $ 3,662,464 $ 4,671,906 4,751,597 5,479,386 6,848,042 4,656,936 2,187,957 5,868,605 $ 17,450,060 $ 20,676,833 5 94,029,000 $ 38,800,000 $ 3,418,250 8,159,443 statements of consolidated surplus for the years ended october 31 1968 1967 capital surplus balance beginning of year $ 2,916,893 $ 2.916,893 add excess of consideration received over cost of 1,700 shares of treasury stock sold 98,549 excess of consideration received over par value of 31 shares of common stock issued upon conversion of debentures . . . 2,929 — balance end of year $ 3,018,371 $ 2,916,893 earned surplus balance beginning of year $ 84,331,625 73,378,618 add — net income 19,943,580 16,543,318 104,275,205 89,921,936 deduct — cash dividends 1.45 per share in 1968 and 1.30 per share in 1967 6,237,317 5,590,311 balance end of year including equity in undistributed earn ings of affiliates notes 1 and 6 $ 98,037,888 84,331,625