The following items, listed alphabetically, appear on Walgreens's consolidated balance sheet at August 31, 2010 (in millions):

Question:

The following items, listed alphabetically, appear on Walgreens's consolidated at August 31, 2010 (in millions):
Accrued expenses and other liabilities.............$2,763
Deferred income taxes (long-term).....................318
Long-term debt.........................................2,389
Other noncurrent liabilities...........................1,735
Short-term borrowings....................................12
Trade accounts payable...............................4,585
Income taxes...............................................73
Required
1. Prepare the Current Liabilities and Long-Term Liabilities sections of Walgreens's classified at August 31, 2010.
2. Walgreens had total liabilities of $10,766 and total shareholders' equity of $14,376 at August 31, 2009. Total shareholders' equity at August 31, 2010, amounted to $14,400. (All amounts are in millions.) Compute Walgreens's debt-to-equity ratio at August 31, 2010 and 2009. As an investor, how would you react to the changes in this ratio?
3. What other related ratios would the company's lenders use to assess the company? What do these ratios measure?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...