Geodesic Domes, Inc., builds environmentally sensitive structures. The company's 2012 revenues totaled $2,800 million. At December 31, 2012, and 2011, the company had $661 million and $600 million in current assets, respectively. The December 31, 2012, and 2011, balance sheets and income statements reported the following amounts:

Requirements

1. Describe each of Geodesic Domes, Inc.'s liabilities and state how the liability arose.

2. What were the company's total assets at December 31, 2012? Evaluate the company's leverage and debt ratios at the end of 2011 and 2012. Did the company improve, deteriorate, or remain about the same over the year?

3. Accounts payable at the end of 2010 was $190 million. Calculate accounts payable turnover as a ratio and days payable outstanding (DPO) for 2011 and 2012. Calculate current ratios for 2011 and 2012 as well. Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities over the year.

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At Year-end (In millions) 2012 2011 Liabilities and stockholders' equity Current liabilities Accounts payable S 110 S 182 Accrued expenses Employee compensation and benefits 15 20 394 1,315 154 20 1,492 S3,375 Current portion of long-term debt.. 7 259 1,394 102 Total current liabilities Long-term debt Post-retirement benefits payable Other liabilities Stockholders' equity Total liabilities and stockholders' equity Year-end (in millions) Cost of goods s 1,951 $3,714 $1,656 $1,790