Earth Friendly Structures, Inc., builds environmentally sensitive structures. The company's 2016 revenues totaled $2,760 million. At December 31, 2016, and 2015, the company had. Respectively, $658 million and $603 million in current assets. The December 31. 2016. and 2015, balance sheets and income statements reported the following amounts:

Requirements
1. Describe each of Earth Friendly Structures, Inc.'s, liabilities and state how the liability arose.
2. What were the company's total assets at December 31, 2016? Evaluate the company's leverage and debt ratios at the end of 2015 and 2016. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. Did the company improve, deteriorate, or remain about the same over the year?
3. Assume that beginning and ending inventories .for both periods did not differ by a material amount. Accounts payable at the end of 2014 was $176 million. Calculate accounts payable turnover as a ratio and days' payable outstanding (DPO) for 2015 and 2016. Calculate current ratios for 2015 and 2016 as well. Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities over the year.

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A1 2016 2015 At year-end (In millions) 2Liabilities and stockholders' equity Current liabilities 4Accounts payable 5 Accrued expenses 6Employee compensation and benefits 7 | Current portion of long-term debt 144S 172 180 32 112 45 305 1,842 29 2418 Total current liabilities 390 1321 116 9 Long-term debt 10 Post-retirement benefits payable 1Other liabilities 2 Stockholders' equity 13 Total liabilities and stockholders' equity 14Year-end (in millions) 15 Cost of goods sold 16 $1,580 $1218