Partial classified balance sheet for boeing

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Reference no: EM13953505

Partial Classified Balance Sheet for Boeing

The following items appear on the consolidated balance sheet of Boeing Inc. at December 31, 2011 (in millions). The information in parentheses was added to aid in your understanding.

Accounts payable	$ 8,406
Accrued retiree healthcare	7,520
Accrued pension plan liability, net	16,537
Accrued liabilities	12,239
Advances and billings in excess of related costs (current)	15,496
Deferred income taxes and income taxes payable (assume current)	2,780
Short-term debt and current portion of long-term debt	2,353
Non-current income taxes payable	122
Other long-term liabilities	907
Long-term debt	10,018
Source: Boeing, Inc., 2011 Form 10-K.

Required

1. Prepare the Current Liabilities and Long-Term Liabilities sections of Boeing's classified bal- ance sheet at December 31, 2011.

2. Boeing had total liabilities of $65,703 and total shareholders' equity of $2,862 at December 31, 2010. Total shareholders' equity amounted to $3,608 at December 31, 2011. (All amounts are in millions.) Compute Boeing's debt-to-equity ratio at December 31, 2011 and 2010. 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?

Reference no: EM13953505

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