** Solvency Accounting question. Thanks for the help! Summary income statements and...
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** Solvency 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
** Please fill out the below table. Please include work/formulas used below the table if you can. Thanks again!
(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
Answer & Explanation
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