Question: Examine the partial balance sheet of Altria Group shown below and

Examine the partial balance sheet of Altria Group shown below and answer the following questions.
1. Current assets for Altria Group (parent company of Philip Morris) totaled $25,901 (in millions) at the end of 2004. Compute the company’s current ratio.
2. Why would Altria classify its liabilities into two different categories?
3. Compute Altria’s debt-to-equity ratio for 2004 using
(a) Only long-term debt and
(b) All liabilities in your computations.
Why the huge difference in your answers? When interpreting a debt-to-equity ratio computed by someone else, what should be your firstquestion?

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  • CreatedApril 07, 2012
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