P4-29. Compute and Interpret Liquidity, Solvency, and Coverage Ratios Information from the balance sheet, income statement, and statement of cash flows for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements. 2016 2015 $40,365 6,883 $34,868 5,668 40,536 47,248 (36,616) (6,040) (31,091) (4,824) (82) LOCKHEED MARTIN CORPORATION Consolidated Statements of Earnings Year Ended December 31 (in millions) Net sales Products.. Services .... Total net sales ........ Cost of sales Products ..... Services Severance charges.. Other unallocated, net ... Total cost of sales. Gross profit. ... Other income, net....... Operating profit ...... Interest expense........ Other non-operating income, net. Earnings from continuing operations before Income taxes.. Income tax expense...... Net earnings from continuing operations...... Net (loss) earnings from discontinued operations .. Net earnings ... (80) 550 (47 (42,186) 5,062 487 (36,044) 4,492 220 4.712 (443) 30 5.549 (663) 4,886 (1.133) 3,753 1,549 4.299 (1,173) 3,126 479 $5102 $ 3,605 LOCKHEED MARTIN CORPORATION Consolidated Balance Sheets December 31 (in millions, except par value) 2016 2015 $ 1,837 8.202 4,670 399 $ 1,090 7.254 4,819 441 969 Assets Current assets Cash and cash equivalents. Receivables, net.... Inventories, net....... Other current assets. Assets of discontinued operations.. Total current assets Property, plant, and equipment, net. Goodwil......... Intangible assets, net. Deferred income taxes.. Other noncurrent assets.. Assets of discontinued operations. Total assets..... 15,108 5,549 10,764 4,093 6.625 5,667 14,573 5,389 10,695 4,022 6,068 5,396 3.161 $47,806 $49,304 $ 1.653 6,776 1,764 2.349 Liabilities and stockholders' equity Current liabilities Accounts payable... Customer advances and amounts in excess of costs incurred Salaries, benefits, and payroll taxes.. Current maturities of long-term debt .. Other current liabilities ....... Liabilities of discontinued operations. Total current liabilities ... Long-term debt, net. Accrued pension liabilities... Other postretirement benefit liabilities ..... Other noncurrent liabilities... Liabilities of discontinued operations.... Total liabilities .................................. .. Stockholders' equity Common stock, $1 par value per share.. Additional paid-in capital ... Retained earnings... Accumulated other comprehensive loss. Total stockholders' equity... Noncontrolling interests in subsidiary ....... Total equity ........... Total liabilities and stockholders' equity... 12.542 14.282 13,855 862 4,659 $ 1,745 6,703 1,707 956 1.859 948 13,918 14,305 11.807 1.070 4.902 206 46.207 46,200 289 303 14.238 (11.444) 3,097 13,324 (12,102) 1,511 95 1.606 $47,806 3,097 $49,304
