The following items appear on the consolidated balance sheet of Boeing Inc. at December 31, 2013 (in millions). The information in parentheses was added to aid in your understanding.
Accounts payable .................................................................. $9,498
Accrued retiree health care ........................................................ 6,528
Accrued pension plan liability, net .............................................. 10,474
Accrued liabilities .................................................................. 14,131
Advances and billings in excess of related costs (current) ................... 20,027
Deferred income taxes and income taxes payable (assume current) ........ 6,267
Short-term debt and current portion of long-term debt ....................... $ 1,563
Non-current income taxes payable .......................................... 156
Other long-term liabilities ................................................... 950
Long-term debt ............................................................. 8,072
Required
1. Prepare the Current Liabilities and Long-Term Liabilities sections of Boeing's classified balance sheet at December 31, 2013.
2. Boeing had total liabilities of $82,929 and total shareholders' equity of $5,967 at December 31, 2012. Total shareholders' equity amounted to $14,997 at December 31, 2013. (All amounts are in millions.) Compute Boeing's debt-to-equity ratio at December 31, 2013 and 2012. As an investor, how would you react to the changes in this ratio?
3. What other related ratios would the company's lenders use to assess the company? What do these ratios measure?