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Compute and Interpret Liquidity, Solvency and Coverage Ratios Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer

Compute and Interpret Liquidity, Solvency and Coverage Ratios Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements.

Consolidated Statements of Earnings
Year Ended December 31 (In millions) 2012 2011 2010
Net sales
Products $ 37,817 $ 36,925 $ 36,380
Services 9,365 9,574 9,291
Total net sales 47,182 46,499 45,671
Cost of sales
Products (33,495) (32,968) (32,539)
Services (8,383) (8,514) (8,382)
Severance and other charges (48) (136) (220)
Other unallocated costs (1,060) (1,137) (686)
Total cost of sales (42,986) (42,755) (41,827)
Gross Profit 4,196 3,744 3,844
Other income, net 238 276 261
Operating profit 4,434 4,020 4,105
Interest expense (383) (354) (345)
Other non-operating income (expense), net 21 (35) 18
Earnings before taxes 4,072 3,631 3,778
Income tax expense (1,327) (964) (1,164)
Net earnings from continuing operations 2,745 2,667 2,614
Net (loss) earnings from discontinued operations -- (12) 264
Net earnings $ 2,745 $ 2,655 $ 2,878

Consolidated Balance Sheets
December 31 (in millions, except par value) 2012 2011
Assets
Current Assets
Cash and cash equivalents $ 1,898 $ 3,582
Receivables, net 6,563 6,064
Inventories, net 2,937 2,481
Deferred income taxes 1,269 1,339
Other current assets 1,188 628
Total current assets 13,855 14,094
Property, plant and equipment, net 4,675 4,611
Goodwill 10,370 10,148
Deferred income taxes 4,809 4,388
Other noncurrent assets 4,948 4,667
Total assets $ 38,657 $ 37,908
Liabilities and stockholders' equity
Current Liabilities
Accounts payable $ 2,038 $ 2,269
Customer advances and amounts in excess of costs incurred 6,503 6,399
Salaries, benefits and payroll taxes 1,649 1,664
Current maturities of long-term debt 150 --
Other current liabilities 1,815 1,798
Total current liabilities 12,155 12,130
Long-term debt 6,158 6,460
Accrued pension liabilities 15,278 13,502
Other post-retirement benefit liabilities 1,220 1,274
Other noncurrent liabilities 3,807 3,541
Total Liabilities 38,618 36,907
Stockholders' equity
Common stock, $1 par value per share 321 321
Additional paid-in capital -- --
Retained earnings 13,211 11,937
Accumulated other comprehensive loss (13,493) (11,257)
Total stockholders' equity 39 1,001
Total liabilities and stockholders' equity $ 38,657 $ 37,908

Consolidated Statement of Cash Flows
Year Ended December 31 (in millions) 2012 2011 2010
Operating Activities
Net earnings $ 2,745 $ 2,655 $ 2,878
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 988 1,008 480
Stock-based compensation 167 157 129
Deferred income taxes 930 (2) 467
Severance and other charges 48 136
Reduction in tax expense from resolution of certain tax matter -- (89) (258)
Tax expense related to Medicare Part D reimbursement -- -- (94)
Net adjustments related to discontinued operations -- (16) 330
Changes in operating assets and liabilities:
Receivables, net (460) (363) 3
Inventories, net (422) (74) (207)
Accounts payable (236) 609 (364)
Customer advances and amounts in excess of costs incurred 57 502 706
Post-retirement benefit plans (1,883) (393) (1,027)
Income taxes (535) 304 70
Other, net 162 (181) 21
Net cash provided by operating activities 1,561 4,253 3,801
Investing Activities
Capital expenditures (942) (987) (1,074)
Acquisition of business/investments in affiliated (304) (649) (148)
Net proceeds from sale of EIG -- -- 798
Net cash provided by (used for) short-term investment transactions -- 510 (171)
Other,net 24 313 22
Net cash used for investing activities (1,222) (813) (573)
Financing Activities
Repurchases of common stock (990) (2,465) (2,420)
Proceeds from stock option exercises 440 116 59
Dividends paid (1,352) (1,095) (969)
Premium paid on debt exchange (225) -- --
Issuance of long-term debt, net of related costs -- 1,980 --
Repayments of long-term debt -- (632) --
Other, net (104) (23) (28)
Net cash used for financing activities (2,023) (2,119) (3,358)
Net change in cash and cash equivalents (1,684) 1,321 (130)
Cash and cash equivalents at beginning of year 3,582 2,261 2,391
Cash and cash equivalents at end of year $ 1,898 $ 3,582 $ 2,261

2012 total liabilities-to-stockholders' equity
2011 total liabilities-to-stockholders' equity
2012 total debt-to-equity
2011 total debt-to-equity
2012 times interest earned
2011 times interest earned
2012 cash from operations to total debt
2011 cash from operations to total debt
2012 free operating cash flow to total debt
2011 free operating cash flow to total debt

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