Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2001 (in millions). For additional
Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2001 (in millions). For additional information, their Web sites (and ticker symbols) are www.dupont.com (DD), www.dow.com (DOW), and www.ppg.com (PPG). | |||
Income Statement | |||
DuPont | Dow | PPG | |
Revenues | $24,726 | $27,805 | $8,169 |
COGS | 16,727 | 22,015 | 5,137 |
Gross Profit | 7,999 | 5,790 | 3,032 |
SG&A Expenses | 4,513 | 2,807 | 1,764 |
Net Income | 4,339 | (385) | 387 |
Balance Sheet | |||
DuPont | Dow | PPG | |
Cash & Market Securities | $5,763 | $220 | $108 |
Receivables, net | 3,903 | 5,098 | 1,416 |
Inventories | 4,215 | 4,440 | 904 |
Total Current Assets | 14,801 | 10,308 | 2,703 |
Fixed Assets, net | 13,287 | 13,579 | 2,752 |
Total Assets | 40,319 | 35,515 | 8,452 |
Total Current Liabilities | 8,067 | 8,125 | 1,955 |
Total Liabilities | 25,867 | 25,522 | 5,372 |
Total Equity | 14,452 | 9,993 | 3,080 |
The following additional information is provided for fiscal year 2000 (in millions): | |||
DuPont | Dow | PPG | |
Inventory | $4,658 | $3,463 | $1,121 |
Receivables, net | 4,552 | 5,385 | 1,563 |
Working Capital | 2,401 | 1,387 | 550 |
Fixed Assets, net | 13,287 | 13,579 | 2,752 |
Total Assets | 39,426 | 27,645 | 9,125 |
Total Equity | 13,299 | 9,686 | 3,097 |
** Please show formulas/work below the table. **
Common-size analysis for fiscal year 2001: Given the information presented on Sheet 1, a) Complete these tables using common-size analysis; b) Summarize the highlights from common-size analysis for these companies and indicate possible red flags following the tables. | |||
Income Statement - Common Size | |||
DuPont | Dow | PPG | |
Revenues | 100% | 100% | 100% |
COGS | |||
Gross Profit | |||
SG&A Expenses | |||
Net Income | |||
Balance Sheet - Common Size | |||
DuPont | Dow | PPG | |
Cash & Market Securities | |||
Receivables, net | |||
Inventories | |||
Total Current Assets | |||
Fixed Assets, net | |||
Total Assets | 100% | 100% | 100% |
Total Current Liabilities | |||
Total Liabilities | |||
Total Equity |
|
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