Question
Some statement of financial position information is shown here (all values in millions of dollars): Statement of Financial Position: 2013 2012 2011 2010 Assets Current
Some statement of financial position information is shown here (all values in millions
of dollars):
Statement of Financial
Position: 2013 2012 2011 2010
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 1043
Long-term investments 128 97 200
Property, plant, andequipment 979 991 995 1052
Goodwill 744 748 736 742
Other assets 777 827 911 797
Total Assets 3,756 3,710 3,772 3,834
Liabilities
Current Liabilities
Accounts payable 876 1,467 922 980
Short/current longtermdebt 410 2 173 288
Other current liabilities
Total CurrentLiabilities 1,286 1,469 1,095 1268
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 StockholderEquity 346 457 1,644 1,540
Total Liabilities Stock Eq 3,756 3,710 3,772 3,834
a. What change in the book value of the companys equity took place at the end of
2012?
b. For 2012 and 2013, is the companys market-to-book ratio meaningful? Is its
book debt-equity ratio meaningful? Explain.
c. Does the companys book value of equity in 2013 imply that it is unprofitable?
Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Charles Schwab Guide To Finances After Fifty
Authors: Carrie Schwab-Pomerantz, Joanne Cuthbertson
1st Edition
0804137366, 978-0804137362
