The balance sheet information for Clorox Co. (CLX) in 2004—2005 is shown here, with data in $ thousands:

a. What change in the book value of Cloroxs equity took place at the end of 2004?

b. Is Cloroxs market-to-book ratio meaningful? Is its book debt-equity ratio meaningful?
Explain.

c. Find online Cloroxs other financial statements from that time. What was the cause of the change to Cloroxs book value of equity at the end of 2004?

d. Does Cloroxs book value of equity in 2005 imply that the firm is unprofitable? Explain.

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Balance Sheet: 31-Mar-05 31-Dec-04 30-Sep-04 30-Jun-04 Assets Current Assets Cash and cash equivalents 293,000 300,000 255,000 232,000 Net receivables 401,000 362,000 385,000 460,000 Inventory 374,000 342,000 437,000 306,000 Other current assets 60,000 43,000 53,000 Total Current Assets 1,128,000 1,047,000 1,130,000 45,000 1,043,000 Long-term investments 128,000 97,000 Property, plant, and equipment 979,000 991,000 995,000 200,000 1,052,000 Goodwill 744,000 748,000 736,000 742,000 Other assets 777,000 827,000 911,000 797,000 Total Assets 3,756,000 3,710,000 3,772,000 3,834,000 Liabilities Current Liabilities Accounts payable 876,000 1,467,000 922,000 980,000 Short/current long-term debt 410,000 2,000 173,000 288,000 Other current liabilities Total Current Liabilities 1,286,000 1,469,000 1,095,000 1,268,000 Long-term debt 2,381,000 2,124,000 474,000 475,000 Other liabilities 435,000 574,000 559,000 551,000 Total Liabilities 4,102,000 4,167,000 2,128,000 2,294,000 Total Stockholder Equity -346,000 -457,000 1,644,000 1,540,000 Total Liabilities & Stockholder Equity $3,756,000 $3,710,000 $3,772,000 $3,834,000