**Common-Size Analysis Accounting question. Thanks for the help! Summary income...

50.1K

Verified Solution

Question

Accounting

**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 Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students