1. When comparing Airbus and Boeing together, what type of ratio comparison is this?

2. Solvency ratios aim to measure the ability of a company to meet its long-term liabilities. It measures if they can complete a payment of interest when it is due and payment of debt as it reaches maturity.

4. State the formula for the debt-to-assets ratio. What are the debt-to-assets ratios for Boeing and Airbus in 2017? Based on your debt-to-assets ratios, which company is more solvent in 2017, Boeing or Airbus? [Put your answer as a percentage, rounded to two decimal places.]

5. State the formula for return on assets. What are the returns on assets for Boeing and Airbus in 2017? Based on your returns on assets, which company is more profitable for 2017, Boeing or Airbus? [Put your answer as a percentage, rounded to two decimal places.]

6. State the formula for the current ratio. What are the current ratios for Boeing and Airbus in 2017? Based on your current ratios, which company is more liquid in 2017, Boeing or Airbus? [Round your answer to two decimal places.]

7. Airbus uses euros as its functional currency while Boeing uses U.S. dollars. Can these ratio comparisons be made? Why or why not?

Optional - Bonus (5 points)

8. Airbus prepares financial statements using International Financial Reporting Standards (IFRS) and uses revaluation accounting for major classes of its assets. Refer to A look at IFRS, p. 9-54 through 9-55) for a refresher. In FY 2017, Airbus had a revaluation increase of 7,773M in the value of its leased assets. Re-calculate the return on assets on a

The Boeing Company and Subsidiaries Consolidated Statements of Financial Position 2017 2016 $8,813 1,179 10,516 309 44,344 65,161 2,740 12,672 5,559 2,573 341 1,260 2,027 $92,333 $8,801 1,228 8,832 428 43.199 62,488 3,773 12,807 5.324 2,540 332 1.317 1,416 $89,997 (Dollars in millions, except per share data) December 31, Assets Cash and cash equivalents Short-term and other investments Accounts receivable, net Current portion of customer financing, net Inventories, net of advances and progress billings Total current assets Customer financing, net Property, plant and equipment, net Goodwill Acquired intangible assets, net Deferred income taxes Investments Other assets, net of accumulated amortization of $482 and $497 Total assets Liabilities and equity Accounts payable Accrued liabilities Advances and billings in excess of related costs Short-term debt and current portion of long-term debt Total current liabilities Deferred income taxes Accrued retiree health care Accrued pension plan liability, net Other long-term liabilities Long-term debt Shareholders' equity: Common stock, par value $5.00 - 1,200,000,000 shares authorized; 1,012,261,159 shares issued Additional paid-in capital Treasury stock, at cost Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity $12,202 15,292 27,440 1,335 56,269 1,839 5,545 16,471 2,015 9,782 $11,190 14,691 23,869 384 50,134 1,338 5,916 19,943 2,221 9,568 5,061 6,804 (43,454) 45,320 (13,376) 355 5,061 4,762 (36,097) 40,714 (13,623) 817 57 60 412 877 The Boeing Company and Subsidiaries Consolidated Statements of Operations (Dollars in millions, except per share data) Years ended December 31, Sales of products Sales of services Total revenues 2017 $83,204 10,188 93,392 2016 $84,399 10,172 94,571 2015 $85,255 10.859 96,114 Cost of products Cost of services Boeing Capital interest expense Total costs and expenses (68,365) (7,631) (70) (76,066) 17,326 204 (4,094) (3,179) 21 10,278 129 (360) 10,047 (1,850) $8,197 (72,713) (8,018) (59) (80.790) 13,781 303 (3,616) (4,627) (7) 5,834 Income from operating investments, net General and administrative expense Research and development expense, net Gain/(loss) on dispositions, net Earnings from operations Other income/loss), net Interest and debt expense Earnings before income taxes Income tax expense Net earnings (73,446) (8,578) (64) (82,088) 14,026 274 (3,525) (3,331) (1) 7,443 (13) (275) 7,155 (1,979) $5,176 78 40 (306) 5,568 (673) $4,895 Basic earnings per share $13.60 Diluted earnings per share $13.43 See Notes to the Consolidated Financial Statements on pages 51 - 105. $7.70 $7.61 $7.52 $7.44 Airbus SE - IFRS Consolidated Statements of Financial Position at 31 December 2017 and 2016 in E million) Note 2017 2016 Assets 17 11,629 16,610 12,068 16,913 1,608 Non-current assets Intangible assets Property, plant and equipment Investment property Investments accounted for under the equity method Other investments and other long-term financial assets Non-current other financial assets Non-current other assets Deferred tax assets Non-current securities 1,678 4,204 2,980 2,295 3,598 10,944 3,655 976 2,358 7,557 9,897 55,037 53,941 Current assets Inventories 31,464 8,358 529 1,979 2,907 914 1,627 29,688 8,101 522 1,257 Trade receivables Current portion of other long-term financial assets Current other financial assets Current other assets Current tax assets Current securities Cash and cash equivalents 2,576 1.110 1,551 12,016 10.143 59,794 54,948 Assets and disposal group of assets classified as held for sale Total assets 202 113,937 1,148 111,133 Airbus SE IFRS Consolidated Income Statements for the years ended 31 December 2017 and 2016 (In E million) Note 2017 2016 Revenues 10 66,581 (61,317) 5,264 10 66,767 (59,160) 7,607 (872) (1,567) (2,807) 981 Cost of sales Gross margin Selling expenses Administrative expenses Research and development expenses Other income Other expenses Share of profit from investments accounted for under the equity method (997) (1,726) (2.970) 2,689 (254) 13 (336) 333 231 82 21 3,421 2,258 189 247 Other income from investments Profit before finance costs and income taxes Interest income Interest expense Other financial result Total financial result (517) 1,477 14 1,149 (522) (692) (967) (291) 1,000 15 (1,693) 2,877 Income taxes Profit for the period Attributable to Equity owners of the parent (Net income) Non-controlling interests 2,873 995 Earnings per share Basic Diluted 16 1.29 3.71 3.70 1.29 The Boeing Company and Subsidiaries Consolidated Statements of Financial Position 2017 2016 $8,813 1,179 10,516 309 44,344 65,161 2,740 12,672 5,559 2,573 341 1,260 2,027 $92,333 $8,801 1,228 8,832 428 43.199 62,488 3,773 12,807 5.324 2,540 332 1.317 1,416 $89,997 (Dollars in millions, except per share data) December 31, Assets Cash and cash equivalents Short-term and other investments Accounts receivable, net Current portion of customer financing, net Inventories, net of advances and progress billings Total current assets Customer financing, net Property, plant and equipment, net Goodwill Acquired intangible assets, net Deferred income taxes Investments Other assets, net of accumulated amortization of $482 and $497 Total assets Liabilities and equity Accounts payable Accrued liabilities Advances and billings in excess of related costs Short-term debt and current portion of long-term debt Total current liabilities Deferred income taxes Accrued retiree health care Accrued pension plan liability, net Other long-term liabilities Long-term debt Shareholders' equity: Common stock, par value $5.00 - 1,200,000,000 shares authorized; 1,012,261,159 shares issued Additional paid-in capital Treasury stock, at cost Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity $12,202 15,292 27,440 1,335 56,269 1,839 5,545 16,471 2,015 9,782 $11,190 14,691 23,869 384 50,134 1,338 5,916 19,943 2,221 9,568 5,061 6,804 (43,454) 45,320 (13,376) 355 5,061 4,762 (36,097) 40,714 (13,623) 817 57 60 412 877 The Boeing Company and Subsidiaries Consolidated Statements of Operations (Dollars in millions, except per share data) Years ended December 31, Sales of products Sales of services Total revenues 2017 $83,204 10,188 93,392 2016 $84,399 10,172 94,571 2015 $85,255 10.859 96,114 Cost of products Cost of services Boeing Capital interest expense Total costs and expenses (68,365) (7,631) (70) (76,066) 17,326 204 (4,094) (3,179) 21 10,278 129 (360) 10,047 (1,850) $8,197 (72,713) (8,018) (59) (80.790) 13,781 303 (3,616) (4,627) (7) 5,834 Income from operating investments, net General and administrative expense Research and development expense, net Gain/(loss) on dispositions, net Earnings from operations Other income/loss), net Interest and debt expense Earnings before income taxes Income tax expense Net earnings (73,446) (8,578) (64) (82,088) 14,026 274 (3,525) (3,331) (1) 7,443 (13) (275) 7,155 (1,979) $5,176 78 40 (306) 5,568 (673) $4,895 Basic earnings per share $13.60 Diluted earnings per share $13.43 See Notes to the Consolidated Financial Statements on pages 51 - 105. $7.70 $7.61 $7.52 $7.44 Airbus SE - IFRS Consolidated Statements of Financial Position at 31 December 2017 and 2016 in E million) Note 2017 2016 Assets 17 11,629 16,610 12,068 16,913 1,608 Non-current assets Intangible assets Property, plant and equipment Investment property Investments accounted for under the equity method Other investments and other long-term financial assets Non-current other financial assets Non-current other assets Deferred tax assets Non-current securities 1,678 4,204 2,980 2,295 3,598 10,944 3,655 976 2,358 7,557 9,897 55,037 53,941 Current assets Inventories 31,464 8,358 529 1,979 2,907 914 1,627 29,688 8,101 522 1,257 Trade receivables Current portion of other long-term financial assets Current other financial assets Current other assets Current tax assets Current securities Cash and cash equivalents 2,576 1.110 1,551 12,016 10.143 59,794 54,948 Assets and disposal group of assets classified as held for sale Total assets 202 113,937 1,148 111,133 Airbus SE IFRS Consolidated Income Statements for the years ended 31 December 2017 and 2016 (In E million) Note 2017 2016 Revenues 10 66,581 (61,317) 5,264 10 66,767 (59,160) 7,607 (872) (1,567) (2,807) 981 Cost of sales Gross margin Selling expenses Administrative expenses Research and development expenses Other income Other expenses Share of profit from investments accounted for under the equity method (997) (1,726) (2.970) 2,689 (254) 13 (336) 333 231 82 21 3,421 2,258 189 247 Other income from investments Profit before finance costs and income taxes Interest income Interest expense Other financial result Total financial result (517) 1,477 14 1,149 (522) (692) (967) (291) 1,000 15 (1,693) 2,877 Income taxes Profit for the period Attributable to Equity owners of the parent (Net income) Non-controlling interests 2,873 995 Earnings per share Basic Diluted 16 1.29 3.71 3.70 1.29