Question
Assets Cash $ 274.3 $ 43.0 Accounts receivable (net) 507.7 407.0 Short-term investments 8.2 Inventories 555.4 711.2 Prepaid expenses and other current assets 207.6 571.7
Assets |
|
|
|
|
|
|
|
Cash | $ | 274.3 |
|
| $ | 43.0 |
|
Accounts receivable (net) |
| 507.7 |
|
|
| 407.0 |
|
Short-term investments |
|
|
|
| 8.2 |
| |
Inventories |
| 555.4 |
|
|
| 711.2 |
|
Prepaid expenses and other current assets |
| 207.6 |
|
|
| 571.7 |
|
Current assets | $ | 1,545.0 |
|
| $ | 1,741.1 |
|
Property, plant, and equipment (net) |
| 2,698.2 |
|
|
| 2,612.6 |
|
Intangibles and other assets |
| 288.3 |
|
|
| 588.0 |
|
Total assets | $ | 4,531.5 |
|
| $ | 4,941.8 |
|
Liabilities and Shareholders Equity |
|
|
|
|
|
|
|
Accounts payable | $ | 564.9 |
|
| $ | 778.2 |
|
Short-term notes |
| 304.1 |
|
|
| 635.4 |
|
Accruals and other current liabilities |
| 678.2 |
|
|
| 616.5 |
|
Current liabilities | $ | 1,547.2 |
|
| $ | 2,030.1 |
|
Long-term debt |
| 639.6 |
|
|
| 640.3 |
|
Deferred tax liability |
| 466.6 |
|
|
| 698.7 |
|
Other long-term liabilities |
| 207.0 |
|
|
| 187.1 |
|
Total liabilities | $ | 2,860.4 |
|
| $ | 3,556.2 |
|
Common stock (par and additional paid-in capital) |
| 223.9 |
|
|
| 433.0 |
|
Retained earnings |
| 2,560.9 |
|
|
| 1,692.9 |
|
Less: Treasury stock |
| (1,113.7 | ) |
|
| (740.3 | ) |
Total liabilities and shareholders equity | $ | 4,531.5 |
|
| $ | 4,941.8 |
|
Income Statements | |||||||
Net sales | $ | 5,787.0 |
|
| $ | 7,850.2 |
|
Cost of goods sold |
| (2,825.0 | ) |
|
| (4,395.7 | ) |
Gross profit | $ | 2,962.0 |
|
| $ | 3,454.5 |
|
Operating expenses |
| (1,653.7 | ) |
|
| (2,738.2 | ) |
Interest expense |
| (81.8 | ) |
|
| (48.6 | ) |
Income before taxes | $ | 1,226.5 |
|
| $ | 667.7 |
|
Tax expense |
| (299.7 | ) |
|
| (99.1 | ) |
Net income | $ | 926.8 |
|
| $ | 568.6 |
|
Net income per share | $ | 1.5 |
|
| $ | 7.6 |
|
Evaluate and compare the two companies by responding to the following questions. Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios on the next page 2. Evaluate and compare the two companies in the space provided
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