Purpose: To help you understand and compare the performance of two companies in the same industry.
Find the Bombardier Annual Report located in MyAccountingLab and go to the financial statements. Now access the 2010 annual report for The Boeing Company. To do this from the internet, go to their webpage for the Investor Relations at http://www.boeing.com/companyoffices/financial/quarterly.htm and, under Annual Report, go to the 2010 Annual Report.
1. Calculate the current ratio for Boeing for 2010 and 2009. Has the current ratio improved or deteriorated? Comment on how Boeing determines what is in current? Which balance sheet classification presentation do you find more useful: Boeing’s or Bombardier’s? Why?
2. Which of these companies is also involved in providing customer financing? How did you determine this? Which accounts on the consolidated balance sheets indicate this? Which accounts on the consolidated statements of income (or operations) might also indicate this?