Green Domes, Inc. builds environmentally sensitive structures. The company's 2014 revenues totaled 2,760 million. At December 31, 2014, and 2013, the company had, respectively, 658 million and 603 million in current assets. The December 31, 2014 and 2013 balance sheets and income statement report the following amounts:

At year end (in millions) 2014 2013

Liabilities and stockholders equity

current liabilities:

accounts payable 107 179

accrued expenses 97 177

employee compensation and benefits 45 15

current portion of long-term debt 7 20

total current liabilities 256 391

long-term debt 1384 1300

post-retirement benefits payable 102 154

other liabilities 8 20

stockholders equity 1951 1492

total liabilities and stockholders equity 3701 3357

year end (in millions)

cost of goods sold 1546 1650

Requirements:

1. Describe each of Greene Domes, Inc.'s liabilities and state how the liability arose.

2. What were the company's total assets at December 31, 2014? Evaluate the company's leverage and debt ratios at the end of 2013 and 2014. Did the company improve, deteriorate or remain about the same over the year?

3. Assume that beginning and ending inverntories for both periods did not differ by a material amount. Accounts payable at the end of 2012 was 190 million. Calculate accounts payable turnover as a ratio and days' payable outstanding (DPO) for 2013 and 2014. Calculate current ratios for 2013 and 2014 as well. Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities over the year.