Bethlehem Steel Corporation is one of the leading U.S. producers of steel plate and corrosionresistant coated sheet steel used in the automotive markets. Bethlehem Steel's comparative statements of income and retained earnings and consolidated balance sheet for 1995 and 1994 follow.

a. Perform a horizontal and vertical analysis of Bethlehem Steel's financial statements in a manner similar to Illustrations 17.1 and 17.2.

b. Comment on the results obtained.

Transcribed Image Text:

BETHLEHEM STEEL CORPORATION Consolidated Statement of Earnings For the Years Ended December 31, 1995, and 1994 ($ thousands) Net sales Costs and Expenses: Cost of sales. Depreciation Estimated restructuring losses Total Costs Income from operations. Financing income (expense): Interest and other income. Interest and other financing costs Income before Income Taxes and Cumulative Effect of Changes in Accounting Benefit (Provision) for Income Taxes. Net earnings (loss).. Retained Earnings, January 1 Dividends.. Retained Earnings, December 31. December 31 (1) (2) 1995 1994 $4,867.5 $4,819.4 $4,202.8 $4,287.3 284.0 261.1 111.8 137.4 $4,598.6 $4,685.8 $ 268.9 $ 133.6 7.7 7.1 (60.0) (46.2) $ 216.6 $ 94.5 (37.0) (14.0) $ 179.6 $ 80.5 (859.4) (939.9) $ (679.8) $ (859.4) 0.0 0.0 $ (679.8) $ (859.4)