statement of sources and applications of funds notes to consolidated financial statements utah construction & mining co and subsidiaries october 31 1970 funds were provided from net income add — depreciation and depletion expenses not requiring an expenditure of funds — • mining and other discontinued operations increase in long-term liabilities including an increase of 20,796,000 payable to banks in 1970 sale of construction equipment investment in joint ventures and other noncurrent assets proceeds from issuance of 10 equity interest in subsidiary company . decrease in other assets total funds provided funds were used for increase in net investment in — long-term receivables affiliated companies land and real estate mining lands leases and development costs mining equipment and facilities mining facilities under construction and pre-mine development .... other equipment and facilities other assets cash dividends paid to stockholders total funds used net decrease in working capital auditors report years ended october 31 1970 1969 $ 30,273,265 i 37,087,965 28,888,269 1,555,523 19,950,000 682,095 $ 19,825,419 6,045,986 3,301,384 1,029,797 19,772,089 57,366,877 484,343 8,736,066 6,844,882 1,448,146 35,015,767 908,954 5,116,185 9,311,205 9,036,495 2,030,862 417,073 12,792,639 9,100,067 2,786,130 1,207,680 7,187,839 to the shareholders and board of din utah construction & mining co we sary in the circ ces as we considered istances we did not sheets of utah construction & mining co a delaware corporation and subsidiaries as of october 31 1970 and 1969 and the related stock 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 28 ents but were furnished with fairly the financial position of utah construction & mining co and subsidiaries as of october 31 70 and 1969 and the results of their operations id the sources and applications of funds for ich of the years then ended in conformity with merally accepted accounting principles applied arthur andersen & co rancisco califor mber4,1970 note 1 principles of consolidation the consolidated financial statements include the accounts of utah construction & mining co and all subsidiary companies the company addition the statements include the company's equity in the net earnings of affiliated companies in which the company does not have a majority interest these affiliates are in the nature of joint venture corporations and therefore the company's equity in these companies has been treated in the same manner as equity in joint venture partnerships equity in such earnings is recorded based upon the affiliates audited financial statements submitted by the respective companies an appropriate provision for related income taxes payable on such earnings when distributed has been made in the accompanying financial statements the following is a summary of the unaudited consolidated balance sheets of marcona corporation marcona the company's most significant affiliate 46 equity owned at october 31 1970 and 1969 $ 59,077,000 166,931,000 $ 49,738,000 143,663,000 rrent liabilities . . . . ickholders equity . . $ 30,343,000 $ 26,958,000 49,369,000 32,600,000 146,296,000 133,843,000 226,008,000 193,401,000 the company's recorded share of the stockholders equity shown above is as of october 31 1970 58,675,000 including its investment cost of 4,801,000 marcona's consolidated net income unaudited was 19,953,000 for the year ended october 31 1970 and 21,345,000 for 1969 the company's recorded share of this income after an exclusion for taxes payable by marcona on distribution of earnings by its subsidiaries for which no reserve has been provided on its books and a further provision for distribution taxes payable by the company upon distribution of earnings was 6,733,000 in 1970 and 8,004,000 in 1969 historically depending upon the then circumstances approximately forty to sixty percent of marcona's net income has been stockholders equity in marcona is represented by net assets located in peru during the past two years the peruvian government has nationalized certain industries and has imposed certain currency restrictions there restrictions have not adversely affected operations or dividend policies the composition of the company's equity interest in affiliated companies at october 31 1970 and 1969 is as follows the a mts of foreign branches subsidiaries and affiliates hai year-ends fluctuations in these exchange rates had no significant effect upon the accompanying consolidated financial statements note 2 earnings per share per share amounts have been calculated based on the weighted average on a monthly basis of shares outstanding during each year net income per share assuming full conversion of the convertible debentures gives effect to the dilution which would have resulted from conversion of the 5 subordinated guaranteed debentures and in 1969 ivi 7¥i notes payable to banks due in varying installments from 1973 to 1975 eurodollar notes-9 at october 31 1970 interest 1 above average eurodollar ratej due 1976 72,279,000 $ 92,864,000 varying installments to 1990 due in varying installments to 1987 . 4%-5 purchase money obligations due in varying installments to 1973 . 19,186,507 $ 17,887,664 3,695,484 3,661,491 equity in undistributed earnings 1 included in earned surplus . . included in liability for defem income taxes payable upon f affiliates 68,835,528 16,017,004 62,918,709 15,887,837 ired only by the relat other in september 1970 the 5 convertible subordi november 1 1992 were called for redemption o accordingly none of these debentures are show october 31 1970 ated debentures due october 23 1970 1 as outstanding as of