You are considering investing in Eli Lilly, a major pharmaceutical company. As part of your investigation of Lilly, you obtained the following balance sheets for the years ended December 31, 2012 and 2011 (dollars in millions):

REQUIRED:

a. Compute the dollar change in each account from 2011 to 2012. Also compute the percentage change in each account from 2011 to 2012.

b. Convert the balance sheets to common-size balance sheets. Also compute the percentage change in the common-size numbers of each account from 2011 to 2012.

c. Does the information in (b) provide any additional data to that in (a)? Explain.

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2012 2011 Assets Current assets: $ 4,019 $ 5,923 Cash Short-term marketable securities 1,666 975 Accounts receivable 3,336 3,598 Inventory 2,644 2,300 1,374 Other current assets 1,452 $ 14,248 $13,039 Total current assets Property, plant, and equipment 7,760 7,760 13,600 11,652 Other assets $34,399 Total assets $ 33,660 Liabilities and Shareholders' Equity Current liabilities: $ 12 $ 1,522 Short-term borrowings Accounts payable 1,188 1,125 Wages payable 940 805 Dividends payable 541 542 Income taxes payable 144 262 Other current liabilities 5,565 4,675 $ 8,931 $ 8,390 Total current liabilities Long-term debt 11,236 11,193 Contributed capital (1,315) (1,362) Retained earnings 16,087 14,898 $34,399 $33,661 Total liabilities and shareholders' equity *Net, including treasury stock and other adjustments.