The following items appear on the consolidated balance sheet of Boeing Inc. at December 31, 2010 (in millions). The information in parentheses was added to aid in your understanding.
Accounts payable..........................................................$ 7,715
Accrued retiree healthcare..................................................8,025
Accrued pension plan liability, net........................................9,800
Other accrued liabilities...................................................13,802
Advances and billings in excess of related costs (current)............12,323
Deferred income taxes and income taxes payable (assume current)....607
Short-term debt and current portion of long-term debt..................948
Non-current income taxes payable..........................................418
Other long-term liabilities....................................................592
Long-term debt............................................................11,473
Required
1. Prepare the Current Liabilities and Long-Term Liabilities sections of Boeing's classified balance sheet at December 31, 2010.
2. Boeing had total liabilities of $59,828 and total shareholders' equity of $2,128 at December 31, 2009. Total shareholders' equity amounted to $2,766 at December 31, 2010. (All amounts are in millions.) Compute Boeing's debt-to-equity ratio at December 31, 2010 and 2009. 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?