The balance sheet information for Clorox Co. (CLX) in 20042005 is shown here (all values in thousands

The balance sheet information for Clorox Co. (CLX) in 2004–2005 is shown here (all values in thousands of dollars) (see MyFinanceLab for the data in Excel format):

a. What change in the book value of Clorox's equity took place at the end of 2004?
b. Is Clorox's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful?
Explain.
c. Find Clorox's other financial statements from that time online. What was the cause of the change to Clorox's book value of equity at the end of 2004?
d. Does Clorox's 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 Current Assets 232,000 460,000 306,000 45,000 1,043,000 200,000 1,052,000 742,000 797,000 3,834,000 Cash and cash equivalents 293,000 401,000 374,000 60,000 1,128,000 128,000 979,000 744,000 777,000 3,756,000 300,000 362,000 342,000 43,000 1,047,000 97,000 991,000 748,000 827,000 3,710,000 255,000 385,000 437,000 53,000 1,130,000 Net receivables Inventory Other current assets Total Current Assets Long-term investments Property, plant, and equipment Goodwil Other assets Total Assets Liabilities Current Liabilities 995,000 736,000 911,000 3,772,000 Accounts payable 876,000 410,000 1,467,000 2,000 922,000 173,000 980,000 288,000 Short/current long-term debt Other current liabilities Total Current Liabilities Long-term debt Other liabilities Total Liabilities Total Stockholder Equity Total Liabilities and Stockholder Equity 1,286,000 2,381,000 435,000 4,102,000 -346,000 $3,756,000 1,469,000 2,124,000 574,000 4,167,000 -457,000 $3,710,000 1,095,000 474,000 559,000 2,128,000 1,644,000 $3,772,000 1,268,000 475,000 551,000 2,294,000 1,540,000 $3,834,000