ANNUAL BALANCE SHEET ($ MILLIONS) BOEING CO Dec09 Dec08 Dec07 Dec06 Dec05 ASSETS Cash & Short-Term...

ANNUAL BALANCE SHEET
($ MILLIONS)

BOEING CO

	Dec09	Dec08	Dec07	Dec06	Dec05
ASSETS
Cash & Short-Term Investments	11,223	3,279	9,308	6,386	5,966
Net Receivables	6,153	6,027	6,068	5,655	5,613
Inventories	16,933	15,612	9,563	8,105	7,940
Other Current Assets	966	1,046	2,341	2,837	2,449
	------------------	------------------	------------------	------------------	--------------
Total Current Assets	35,275	25,964	27,280	22,983	21,968

Gross Plant, Property & Equipment	21,579	21,042	20,180	19,310	19,692
Accumulated Depreciation	12,795	12,280	11,915	11,635	11,272
	------------------	------------------	------------------	------------------	--------------
Net Plant, Property & Equipment	8,784	8,762	8,265	7,675	8,420
Investments at Equity	974	942	1,085	964	84
Other Investments	5,522	6,243	9,803	11,641	12,407
Intangibles	7,196	6,332	5,174	4,745	2,799
Deferred Charges	-	-	-	-	13,251
Other Assets	4,302	5,536	7,379	3,786	1,129
	------------------	------------------	------------------	------------------	--------------
TOTAL ASSETS	62,053	53,779	58,986	51,794	60,058

LIABILITIES
Long Term Debt Due In One Year	707	560	762	1,381	1,189
Accounts Payable	7,096	5,871	5,714	5,643	5,124
Taxes Payable	182	41	253	670	556
Accrued Expenses	12,822	6,169	6,637	6,106	6,590
Other Current Liabilities	12,076	18,284	18,172	15,901	14,729
	------------------	------------------	------------------	------------------	--------------
Total Current Liabilities	32,883	30,925	31,538	29,701	28,188

Long Term Debt	12,217	6,952	7,455	8,157	9,538
Deferred Taxes	-	-	1,190	-	2,067
Minority Interest	97
Other Liabilities	14,728	17,196	9,799	9,197	9,206
	------------------	------------------	------------------	------------------	--------------
TOTAL LIABILITIES	59,925	55,073	49,982	47,055	48,999

EQUITY
Common Stock	5,061	5,061	5,061	5,061	5,061
Capital Surplus	3,724	3,456	4,757	4,655	4,371
Retained Earnings	10,869	9,150	16,780	10,236	15,498
Less: Treasury Stock	17,526	18,961	17,594	15,213	13,871
	------------------	------------------	------------------	------------------	--------------
TOTAL EQUITY	2,128	(1,294)	9,004	4,739	11,059
	------------------	------------------	------------------	------------------	--------------
TOTAL LIABILITIES & EQUITY	62,053	53,779	58,986	51,794	60,058

Common Shares Outstanding	726.291	698.138	736.681	757.836	760.577

ANNUAL INCOME STATEMENT

	Dec09	Dec08	Dec07	Dec06	Dec05

Sales	68,281	60,909	66,387	61,530	54,845
Cost of Goods Sold	55,092	48,950	51,977	48,926	44,757
	-------------------	------------------	------------------	------------------	---------------
Gross Profit	13,189	11,959	14,410	12,604	10,088
Selling, General, & Administrative Exp.	9,870	6,852	7,381	7,428	6,433
	-------------------	------------------	------------------	------------------	---------------
Operating Income Before Deprec.	3,319	5,107	7,029	5,176	3,655
Depreciation,Depletion,&Amortization	1,273	1,179	1,130	1,158	1,092
	-------------------	------------------	------------------	------------------	---------------
Operating Profit	2,046	3,928	5,899	4,018	2,563

Interest Expense	604	524	608	657	713
Non-Operating Income/Expense	289	591	827	709	391
Special Items				(876)	578
	-------------------	------------------	------------------	------------------	---------------
Pretax Income	1,731	3,995	6,118	3,194	2,819
Total Income Taxes	396	1,341	2,060	988	257
	-------------------	------------------	------------------	------------------	---------------
Income Before Extraordinary
Items & Discontinued Operations	1,335	2,654	4,058	2,206	2,562
Discontinued Operations	(23)	18	16	9	(7)
	-------------------	------------------	------------------	------------------	---------------
Adjusted Net Income	1,312	2,672	4,074	2,215	2,555

A. What percentage decline in earnings before interest and taxes could Boeing have sustained in these years before failing to cover
i. Interest and principal repayment requirements,
ii. Interest, principal and common dividend payments?
B. What do these calculations suggest about Boeing’s financial leverage during this period?

Please Answer question in detailed and as soon as possible. Thank you!

Expert Solution


i)	Interest & Principle Repayment	Dec 09	Dec 08	Dec 07	Dec 06	Dec 05
	Principle payment requirement	707	560	762	1381	1189
B	Interest payment requirement	604	524	608	657	713
C=A+B	Total interest and principle payment requirement	1311	1084	1370	2038	1902
D	Earning Before Interest and Taxes	2,046	3928	5899	4018	2563
E=D-C	Decline in Earning before interest & taxes could be sustained	735	2,844	4,529	1,980	661
F=(E/D)*100	Percentage of decline could be sustained	35.92%	72.40%	76.78%	49.28%	25.79%

	This calculation indicates Solvency of Boeing . The ability of the company to meet its long term
	obligation.This gives sensitivity or percentage of safety , of the company to meet its debt obligations

ii)	Interest, Principle and coomon dividend payment	Dec 09	Dec 08	Dec 07	Dec 06	Dec 05
	Principle payment requirement	707	560	762	1381	1189
	Interest payment requirement	604	524	608	657	713
	Dividend payment(Information not provided)



		Dec 09	Dec 08	Dec 07	Dec 06	Dec 05
B	Net Income during the year	1,312	2672	4074	2215	2555
D	End of year Retained Earnings	10,869	9150	16780	10236	15498
	Information on common dividend payment is not provided

jeff jeffy answered 9 hours ago

Rowan Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Current assets: ?Cash...

Rowan Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Current assets: ?Cash and cash equivalents $70 $91 ?Accounts receivable 536 572 ?Inventory ??620 ??580 Total current assets ?1,226 ?1,243 Property, plant, and equipment 1,719 1,656 ?Less accumulated depreciation ??640 ??480 Net property, plant, and equipment ?1,079 ?1,176 Total assets $2,305 $2,419 Liabilities and Stockholders’ Equity Current liabilities: ?Accounts payable $205 $180 ?Accrued liabilities 94 105 ?Income taxes payable ???72 ???88 Total current liabilities 371 373 Bonds...

Consider the following balance sheet (in $millions): Assets consisting of Cash of $2 and Loans of...

Consider the following balance sheet (in $millions): Assets consisting of Cash of $2 and Loans of $10; Liabilities consisting of Deposits of $8, Debt of $2 and Equity of $2 (Total Assets of $12). The average interest earned on the loans is 7% and the average cost of deposits is 6%. Rising interest rates are expected to reduce the deposits by $3 million. Borrowing more debt will cost the bank 6.5% in the short term. A. What will be the...

A company’s Balance Sheet (in millions) Assets &nbs

A company’s Balance Sheet (in millions) Assets Liabilities & Equity Current $ 80 Net Fixed $120 Bonds ($1000 Par) 130 Preferred stocks ($100 Par) 40 Total $200 Common Stock ($1 par) 30 Total $200 The company's bonds have 10 years to mature, pay 10% coupon rate semi-annually and comparable bonds' YTM is 14%. The company’s applicable tax rate is 40%. The market price of common stock is $10.50 per share. The common stock is constantly growing at a rate of 6%. The same growth rate is expected to continue for...

US Corporation Balance sheet 2015 (In Millions) Assets Cuurrent Assets Cash $ 104 Account Receivable...

US Corporation Balance sheet 2015 (In Millions) Assets Cuurrent Assets Cash $ 104 Account Receivable $455 inventory $ 553 total assets $ $1,112 Fixed Assets Net Plant and Equipment $ 1,644 Liabilities and Capital current liabilities $232 account payable $ 196 total liabilities $ 428 Long Term Debt $408 Ownership equity common stock $600 retained earnings $1,320 Total Liabilities and Capital $2756 US Corporation Income Statement 2015 (In millions) Net Sales $ 1500 Cost of Goods...

Ratio Analysis: Balance Sheet (Millions of $)       Assets   Liabilities and Equity   Cash and securities $  1,554.0...

Ratio Analysis: Balance Sheet (Millions of $)       Assets   Liabilities and Equity   Cash and securities $  1,554.0 Accounts payable $  7,980.0 Accounts receivable 9660.00 Notes payable 5880.00 Inventories   13,440.0 Accruals     4,620.0 Total current assets 24654.00 Total current liabilities 18480.00 Net plant and equipment   17,346.0 Long-term bonds   10,920.0 Total assets 42000.00 Total debt 29400.00     Common stock 3360.00     Retained earnings     9,240.0     Total common equity 12600.00     Total liabilities and equity 42000.00 Income Statement (Millions of $)   Other data:   Sales 58800.00 Shares outstanding (millions) 175.00...

Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts...

Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts receivable 50,000 30,000 Inventory 50,000 70,000 Property, plant and equipment (net) 160,000 200,000 Total assets $300,000 $400,000 Liabilities and stockholders equity Accounts payable $20,000 $30,000 Short term notes payable 40,000 90,000 Bonds payable 80,000 160,000 Common stock 60,000 45,000 Retained earnings 100,000 75,000 Total liabilities and stockholders equity $300,000 $400,000 Income statement (for the year ended December 31, 2007) Net sales $360,000 Cost of...

SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 ($ millions) Current assets Cash and cash...

SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 ($ millions) Current assets Cash and cash equivalents $2,220 Accounts receivable, net 989 Inventories 970 Other current assets 184 Total current assets 4,363 Property, equipment and leasehold improvements, net 1,869 Goodwill 1,237 Other intangible assets, net 111 Deferred income taxes 1,114 Other assets, net 191 Total assets $8,885 Current liabilities Accounts payable $1,420 Accrued employee compensation 169 Accrued warranty 91 Accrued expenses 552 Total current liabilities 2,232 Long-term accrued warranty 104...

CONSOLIDATED BALANCE SHEET (millions of dollars) 2016 2015 Assets 2016 2015 Current assets 2016 2015 Cash...

CONSOLIDATED BALANCE SHEET (millions of dollars) 2016 2015 Assets 2016 2015 Current assets 2016 2015 Cash and cash equivalents 3,657 3,705 Notes and accounts receivable 21,394 19,875 Inventories: Crude oil, products and merchandise 10,877 12,037 Materials and supplies 4,203 4,208 Other current assets 1,285 2,798 Total current assets 41,416 42,623 Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method – LIFO). Inventory costs include...

Hillside, Inc. BALANCE SHEET INCOME STATEMENT ($ in millions) ($ in millions) ASSETS LIABILITIES Revenue ...

Hillside, Inc. BALANCE SHEET INCOME STATEMENT ($ in millions) ($ in millions) ASSETS LIABILITIES Revenue 28,681.10 Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Cost Of Goods Sold 20,768.80 Accounts Receivable 954.80 Salaries Payable 225.20 Gross Profit 7,912.30 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Operating Expenses: Total Current Assets 5,166.50 Selling, General & Admin. 5,980.80 Other Liabilities 693.40...

Talbert Corp Comparative Balance Sheet December 31, 2017 December 31, 2016 Assets Cash 440,000 200,000 Short-Term...

Talbert Corp Comparative Balance Sheet December 31, 2017 December 31, 2016 Assets Cash 440,000 200,000 Short-Term Investments 600,000 ------------ Accounts Receivable (Net) 1,020,000 1,020,000 Inventory 1,380,000 1,200,000 Long-Term Investments 400,000 600,000 Plant Assets 3,400,000 2,000,0000 Accumulated Depreciation (900,000) (900,000) Patent 180,000 200,0000 Total Assets 6,520,000 4,320,000 Liabilities and Stockholder’s Equity A/P and Accrued Liabilities 1,660,000 1,440,000 Notes Payable (nontrade) 580,000 ------------ Common Stock, $10 par 1,600,000 1,440,000 Additional Paid in Capital 800,000 500,000 Retained Earnings 1,880,000 980,000 Total Liabilities and...

Question