For the years $20052009,$ calculate the following for Boeing:

i$.$ Total liabilities$-$to$-$equity ratio

ii$.$ Times$-$interest$-$earned ratio

iii. Times$-$burden$-$covered ratio

What percentage decline in earnings before interest and taxes could Boeing have sustained in these years before failing to cover:

i$.$ Interest payments?

ii$.$ Interest and principal payments?

What do these calculations suggest about Boeing$$s financial leverage during this period?

BOEING CO$.$

BALANCE SHEET $($$ millions$)$

$20052006200720082009$

ASSETS

Cash & Short$-$Term Investments $5,9666,3869,3083,27911,223$

Net Receivables $5,6135,6556,0686,0276,153$

Inventories $7,9408,1059,56315,61216,933$

Other Current Assets $2,4492,8372,3411,046966$

Total Current Assets $21,96822,98327,28025,96435,275$

Gross Plant, Property & Equipment $19,69219,31020,18021,04221,579$

Accumulated Depreciation $11,27211,63511,91512,28012,795$

Net Plant, Property & Equipment $8,4207,6758,2658,7628,784$

Investments at Equity $849641,085942974$

Other Investments $12,40711,6419,8036,2435,522$

Intangibles $2,7994,7455,1746,3327,196$

Deferred Charges $13,251----$

Other Assets $1,1293,7867,3795,5364,302$

TOTAL ASSETS $60,05851,79458,98653,77962,053$

LIABILITIES

Long Term Debt Due In One Year $1,1891,381762560707$

Accounts Payable $5,1245,6435,7145,8717,096$

Taxes Payable $55667025341182$

Accrued Expenses $6,5906,1066,6376,16912,822$

Other Current Liabilities $14,72915,90118,17218,28412,076$

Total Current Liabilities $28,18829,70131,53830,92532,883$

Long Term Debt $9,5388,1577,4556,95212,217$

Deferred Taxes $2,067-1,190--$

Minority Interest $97$

Other Liabilities $9,2069,1979,79917,19614,728$

TOTAL LIABILITIES $48,99947,05549,98255,07359,925$

EQUITY

Common Stock $5,0615,0615,0615,0615,061$

Capital Surplus $4,3714,6554,7573,4563,724$

Retained Earnings $15,49810,23616,7809,15010,869$

Less: Treasury Stock $13,87115,21317,59418,96117,526$

TOTAL EQUITY $11,0594,7399,004(1,294)2,128$

TOTAL LIABILITIES & EQUITY $60,05851,79458,98653,77962,053$

Common Shares Outstanding $760\mathrm{.}577757\mathrm{.}836736\mathrm{.}681698\mathrm{.}138726\mathrm{.}291$

INCOME STATEMENT $($$ millions$)$

$20052006200720082009$

Sales $54,84561,53066,38760,90968,281$

Cost of Goods Sold $44,75748,92651,97748,95055,092$

Gross Profit $10,08812,60414,41011,95913,189$

Selling, General, & Administrative Exp. $6,4337,4287,3816,8529,870$

Operating Income Before Deprec. $3,6555,1767,0295,1073,319$

Depreciation, Depletion, & Amortization $1,0921,1581,1301,1791,273$

Operating Profit