Some balance sheet information is shown here (all values in millions of dollars): a. What change in
Question:
Some balance sheet information is shown here (all values in millions of dollars):
a. What change in the book value of the company’s equity took place at the end of 2018?
b. Is the company’s market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain.
c. Find the company’s other financial statements from that time online. What was the cause of the change to its book value of equity at the end of 2018?
d. Does the company’s book value of equity in 2019 imply that it is unprofitable? Explain.
Transcribed Image Text:
Balance Sheet: Assets Assets Current Assets Cash and cash equivalents Net receivables Inventory Other current assets Total Current Assets Long-term investments Property, plant, and equipment Goodwill Other assets Total Assets Liabilities Current Liabilities Accounts payable Short/current long-term debt Other current liabilities Total Current Liabilities Long-term debt Other liabilities Total Liabilities Total Stockholder Equity Total Liabilities and Stockholder Equity 31-Mar-19 31-Dec-18 30-Sep-18 30-Jun-18 293 401 374 60 1,128 128 979 744 777 3,756 876 410 1,286 2,381 435 4,102 -346 $3,756 300 362 342 43 1,047 97 991 748 827 3,710 1,467 1,469 2,124 574 4,167 -457 $3,710 255 385 437 53 1,130 - 995 736 911 3,772 922 173 1,095 474 559 2,128 1,644 $3,772 232 460 306 45 1,043 200 1,052 742 797 3,834 980 288 1,268 475 551 2,294 1,540 $3,834
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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