** Solvency Accounting question. Thanks for the help! ** Please fill out the bel
ID: 2577098 • Letter: #
Question
** Solvency Accounting question. Thanks for the help!
** Please fill out the below table. Please include work/formulas used below the table if you can. Thanks again!
Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2001 (in millions). For additional information, their Web sites (and ticker symbols) are www.dupont.com (DD), www.dow.com (DOW), and www.ppg.com (PPG). Income Statement DuPont Dow PPG Revenues $24,726 $27,805 $8,169 COGS 16,727 22,015 5,137 Gross Profit 7,999 5,790 3,032 SG&A Expenses 4,513 2,807 1,764 Net Income 4,339 (385) 387 Balance Sheet DuPont Dow PPG Cash & Market Securities $5,763 $220 $108 Receivables, net 3,903 5,098 1,416 Inventories 4,215 4,440 904 Total Current Assets 14,801 10,308 2,703 Fixed Assets, net 13,287 13,579 2,752 Total Assets 40,319 35,515 8,452 Total Current Liabilities 8,067 8,125 1,955 Total Liabilities 25,867 25,522 5,372 Total Equity 14,452 9,993 3,080 The following additional information is provided for fiscal year 2000 (in millions): DuPont Dow PPG Inventory $4,658 $3,463 $1,121 Receivables, net 4,552 5,385 1,563 Working Capital 2,401 1,387 550 Fixed Assets, net 13,287 13,579 2,752 Total Assets 39,426 27,645 9,125 Total Equity 13,299 9,686 3,097Explanation / Answer
(3) Given the information presented on Sheet 1, calculate the solvency ratios for the three chemical companies. Show calculations following the table.
Dupont Dow PPG Liabilities to equity 25867/14452 = 1.79 25522/9993=2.55 5372/3080=1.74Related Questions
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