Analysis of Asset Position The 2001 consolidated balance sheet of Worldwide Parcel Delivery Corporation contained the following assets:

Worldwide Parcel Delivery Corporation is involved in international airfreight and seafreight shipping and delivery activities.

a. Is it logical for a company with nearly $300,000,000 of assets to report no inventory balance? Explain.

b. Do you think it is unusual for a company to report goodwill in excess of its investment in net plant and equipment? What portion of the total do each of these assets make up? How would the balance in goodwill have been derived? In evaluating Worldwide Parcel Delivery to assess the desirability of purchasing some of its bonds, how would you treat goodwill?

c. Worldwide Parcel Delivery reports current liabilities of $138,547,000 and long-term debt of $78,464,000 at December 31, 2001. How would you assess the riskiness of this company?

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Current assets: Cash Short-term investments Accounts receivable (allowance for doubtful accounts of $2,846,000) Other current assets Total current assets $ 55,063,000 10,109,000 150.969,000 3,224,000 $219,365,000 Investment in unconsolidated affiliates: 7,595,000 Property, plant, and equipment (less accumulated depreciation of $34,096,000) 27,323,000 Deposits and other assets Goodwill (less accumulated amortization of $4,674,000) Total assets 4,604,000 37,331,000 $296,218,000