**Common-Size Analysis Accounting question. Thanks for the help! Summary income...
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**Common-Size Analysis Accounting question. Thanks for the help!
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
3,097
**Using the above data, please fill out the below analysis sheet. If possible please show formulas/work below the table. Thanks!
Common-size analysis for fiscal year 2001: Given the information presented on Sheet 1, a) Complete these tables using common-size analysis; b) Summarize the highlights from common-size analysis for these companies and indicate possible red flags following the tables.
Income Statement - Common Size
DuPont
Dow
PPG
Revenues
100%
100%
100%
COGS
Gross Profit
SG&A Expenses
Net Income
Balance Sheet - Common Size
DuPont
Dow
PPG
Cash & Market Securities
Receivables, net
Inventories
Total Current Assets
Fixed Assets, net
Total Assets
100%
100%
100%
Total Current Liabilities
Total Liabilities
Total Equity
Answer & Explanation
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