Partial Classified Balance Sheet for Boeing The following items appear on the consolidated balance sheet of Boeing Inc. at December 31, 2006

(in millions). The information in parentheses was added to aid in your understanding.

Required 1. Prepare the Current Liabilities and Long-Term Liabilities sections of Boeing’s classified balance sheet at December 31, 2006.
2. Boeing had total liabilities of $48,937 and total shareholders’ equity of $11,059 at December 31, 2005. Total shareholders’ equity amounted to $4,739 at December 31, 2006. (All amounts are in millions.) Compute Boeing’s debt-to-equity ratio at December 31, 2006 and 2005. As an investor, how would you react to the changes in this ratio?
3. What other related ratios would the company’s lenders use to assess the company? What do these ratios measure?

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Accounts payable and other liabilities $16,201 Accrued retiree healthcare 7,671 Advances in excess of related costs 11,449 Short-term debt and current portion of long-term debt 1,381 Income tax payable 670 Long-term debt 8,157 Other long-term liabilities 391 Accrued pension liability (long-term) 1,135