Question
Some balance sheet information is shown here LOADING... Balance Sheet: 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Assets Current Assets Cash and cash equivalents 293 300 255 232
Some balance sheet information is shown here
LOADING...
Balance Sheet: | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | |
Assets | |||||
Current Assets | |||||
Cash and cash equivalents | 293 | 300 | 255 | 232 | |
Net receivables | 401 | 362 | 385 | 460 | |
Inventory | 374 | 342 | 437 | 306 | |
Other current assets | 60 | 43 | 53 | 45 | |
Total Current Assets | 1,128 | 1,047 | 1,130 | 1,043 | |
Long-term investments | 128 | 97 | long dash | 200 | |
Property, plant, and equipment | 979 | 991 | 995 | 1,052 | |
Goodwill | 744 | 748 | 736 | 742 | |
Other assets | 777 | 821821 | 914914 | 797 | |
Total Assets | 3,756 | 3 comma 7043,704 | 3 comma 7753,775 | 3,834 | |
Liabilities | |||||
Current Liabilities | |||||
Accounts payable | 876 | 1,467 | 922 | 980 | |
Short/current long-term debt | 410 | 2 | 173 | 288 | |
Other current liabilities | long dash | long dash | long dash | long dash | |
Total Current Liabilities | 1,286 | 1,469 | 1,095 | 1,268 | |
Long-term debt | 2,381 | 2,124 | 474 | 475 | |
Other liabilities | 435 | 574 | 559 | 551 | |
Total Liabilities | 4,102 | 4,167 | 2,128 | 2,294 | |
Total Shareholder's Equity | minus346 | negative 463463 | 1 comma 6471,647 | 1,540 | |
Total Liabilities and Shareholder's Equity | 3,756 | 3 comma 7043,704 | 3 comma 7753,775 | 3,834 |
(all values in millions of dollars).
a. What change in the book value of the company's equity took place at the end of
20152015?
b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain.
c. Find the company's other financial statements from that time online. What was the cause of the change to its book value of equity at the end of
20152015?
d. Does the company's book value of equity in
20162016
imply that it is unprofitable? Explain.
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