Requirement 1. Describe each liability of New Planet Structures, Inc., and state how the liability arose. Choose the correct liability from the list that best fits the description provided Amounts owed to suppliers for products or services that have been purchased on account 3 that the company has incurred but not yet paid; these are liabilities for expenses such as interest and income taxes. Accounts payable owed to employees for salaries and other payroll-related expenses. Accrued expenses t's principal payment on the company's long-term debt. Current portion of long-term debt unt of long-term notes and bonds payable due more than one year after the balance sheet date. Employee compensation and benefits Dany's liabilities for providing benefitsmainly health careto retirees. Long-term debt ill group of liabilities that do fit one of the more specific categories. These are long-term, as shown by the fact that they are not listed among the current liabilities. Other liabilities 's ability to pay its long-term debts improved, deteriorated, or remained about the same over the year. er 31, 2020? Post-retirement benefits million New Planet Structures, Inc., builds environmentally sensitive structures. The company's 2020 revenues totalled $2,550 million. At December 31, 2020 and 2019, the company had $666 million and $600 million in current assets, respectively. Accounts payable at the end of 2018 was $189 million. The December 31, 2020 and 2019, balance sheets and income statements reported the following amounts: (Click the icon to view the financial statements.) Requirements Requirement 1. Describe each liability of New Planet Structures, Inc., and state how the liability arose. Choose the correct liability from the list that best fits the description provided. Amounts owed to suppliers for products or services that have been purchased on account. Expenses that the company has incurred but not yet paid; these are liabilities for expenses such as interest and income taxes. Amounts owed to employees for salaries and other payroll-related expenses. Next year's principal payment on the company's long-term debt. The amount of long-term notes 2.J bonds payable due more than one year after the balance sheet date. The company's liabilities for providing benefitsmainly health careto retirees. A catch-all group of liabilities that do not fit one of the more specific categories. These are long-term, as shown by the fact that they are not listed among the current liabilities. Requirement 2. Evaluate whether the company's ability to pay its long-term debts improved, deteriorated, or remained about the same over the year. What were the company's total assets at December 31, 2020? The total assets at December 31, 2020, were $ million. Evaluate the company's leverage and debt ratio at the end of 2019 and 2020. Did the company improve, deteriorate, or remain about the same over the year? Begin by computing the debt ratios. (Round your answers to two decimal places, X.XX.) The debt ratio for 2020 is The debt ratio for 2019 is For the leverage ratio, first determine the formula. Then complete the formula and calculate the leverage ratios at the end of 2019 and 2020. (Enter amounts in millions. Round your answers to two decimal places, X.XX.) Leverage ratio 2020 2019 Did the company improve, deteriorate, or remain about the same over the year? Both the leverage ratio and debt ratio in 2020. The company's ability to pay its long-term debts over the year. Requirement 3. Evaluate whether the company's ability to pay its short-term debts improved, deteriorated, or remained about the same over the year. Determine the formula for the accounts payable turnover. Then complete the formula and calculate the accounts payable turnover ratios at the end of 2019 and 2020. (Enter amounts in millions. Round your answer to two decimal places, X.XX.) = Accounts payable turnover 2020 2019 Next, determine the formula for the days payable outstanding (DPO). Then complete the formula and calculate the days payable outstanding at the end of 2019 and 2020. (Enter the amounts in the formula to two decimal places, X.XX. Round your answers to the nearest whole day.) = Days payable outstanding 2020 2019 Now, determine the formula for the current ratios. Then complete the formula and calculate the current ratios at the end of 2019 and 2020. (Round your answers to two decimal places, X.XX.) Current ratio 2020 2019 Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities. Financial statements 2020 2019 $ 110 $ 180 91 176 44 At Year-End (in millions) Liabilities and shareholders' equity Current liabilities Accounts payable Accrued expenses Employee compensation and benefits Current portion of long-term debt Total current liabilities Long-term debt Post-retirement benefits payable. Other liabilities Shareholders' equity 17 29 6 402 251 1,398 105 3 1,953 1,316 155 21 1,490 $ 3,710 S 3,384 Total liabilities and shareholders' equity Year-end (in millions) Cost of goods sold. $ 1,653 0 1,791 Print Done