not sure why i keep getting these wrong. can someone help explain ?
Compute and Interpret Zscore Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements. Income Statement Year Ended December 31 (In millions) 2005 2004 2003 Net sales Products :15 31,518 $ 30,202 $ 27,290 Service 5,695 5,324 4,534 37,213 35,526 31,824 Cost of sales Products 28,800 27,879 25,306 Service 5,073 4,765 4,099 Unallocated coporate costs 803 914 443 34,676 33,558 29,848 2,537 1,968 1,976 Other income (expenses), net 449 121 43 Operating profit 2,986 2,089 2,019 Interest expense 370 425 487 Earnings before taxes 2,616 1,664 1,532 Income tax expense 791 398 479 Netearnings $1,825 $1,266 $1,053 Balance Sheet December 31 (In millions) 2005 2004 Assets Cash and cash equivalents $ 2.244 $1.060 Short-term investments 429 396 Receivables 4,579 4,094 Inventories 1,921 1,864 Deferred income taxes 861 982 Other current assets 495 557 Total current assets 10,529 8,953 Property, plant and equipment, net 3,924 3,599 Investments in equity securities 196 812 Goodwill 8,447 7,892 Purchased intangibles, net 560 672 Prepaid pension asset 1,360 1,030 Other assets 2,728 2,596 Total assets $ 27,744 $ 25,554 Liabilities and stockholders' equity Accounts payable $ 1,998 $ 1,726 Customer advances and amounts in excess of costs incurred 4,331 4,028 Salaries, benefits and payroll taxes 1,475 1,346 Current maturities of long-term debt 202 15 Other current liabilities 1,422 1,451 Total current liabilities 9,428 8,566 Long-term debt 4,784 5,104 Accrued pension liabilities 2,097 1,660 Other postretirement benefit liabilities 1,277 1,236 Other liabilities 2,291 1,967 Stockholders' equity Common stock, $1 par value per share 432 438 Additional paid-in capital 1,724 2,223 Retained earnings 7,278 5,915 Accumulated other comprehensive loss (1,553) (1,532) Other (14) (23) Total stockholders' equity 7,867 7,021 Total liabilities and stockholders' equity $ 27,744 $ 25,554 Consolidated Statement of Cash Flows Year Ended December 31 (In millions) 2005 2004 Operating Activities Net earnings $1,825 $ 1,266 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 555 511 Amortization of purchased intangibles 150 145 Deferred federal income taxes 24 (58) Changes in operating assets and liabilities: Receivables (390) (87) Inventories (39) 519 2003 $ 1,053 480 129 467 (258) (94) Accounts payable Customer advances and amounts in excess of costs incurred Other Net cash provided by operating activities Investing Activities Expenditures for property, plant and equipment Acquisition of business/investments in affiliated companies Proceeds from divestiture of businesses/Investments in affiliated companies Purchase of short~term investments, net Other Net cash used for investing activities Financing Activities repayment of long-term debt lssuances of longterm debt Long-term debt repayment and issuance costs lssuances of common stock Repurchases of common stock Common stock dividends Net cash used for financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end ofyear 239 296 534 3,194 (86$ (564) 935 (33) 28 (499) (133) (12) 406 (L310) (462) (L510 L184 1,060 $ 2,244 288 330 (228) (285) 568 (13) 2,924 1,809 (769) (687) (91) (820 279 234 (156) (240) 29 53 (708) (L460 n,089) (2202) u L000 (163) (173 164 44 (673) (482) (405) (260 (2166) (2076) 50 n,728) 1,010 2,738 $1,060 $1,010 As of December 31 , there were the approximate shares outstanding ." 2005 - 434 , 264, 432 2004 - 440 , 445 , 630 As of December 31 , the company's stock closed at the following values :" 2005 - $63.63 2004 - $55.55 ( a ) Compute and compare the Altman Z-scores for both years . ( Do not round until your final answer ; then round your answers to two decimal places . ) 2005 2 - score =\\ 2.51 2004 2 -score =\\ 2.51
