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Break-Even and Ratio Analysis

4. Break-Even Analysis

5. Ratio Analysis
Required: Calculate the requested ratios using the financials below:
Income Statement (figures in millions of dollars)
Net sales 16,725
Cost of goods sold 5,372
Other expenses 5,105
Depreciation 1,823
Earnings before interest and taxes (EBIT) 4,425
Interest expense 750
Income before tax 3,675
Taxes 1,323
Net Income 2,352
Dividends 1,250

Balance Sheet (figures in millions of dollars)
Assets End of Year Start of Year
Cash and marketable securities 214 108
Receivables 2,507 2,490
Inventories 312 325
Other Current Assets 992 500
Total Current Assets 4,025 3,423
Net, Property, Plant & Equipment 20,098 21,415
Other long-term assets 4,341 4,200
Total Assets 28,464 29,038

Liabilities & Shareholders' Equity
Payables 2,709 2,500
Short-term debt 1,569 1,570
Other current liabilities 1,016 800
Total Current Liabilities 5,294 4,870
Long-term debt and leases 7,018 9,200
Other long-term liabilities 6,428 7,468
Shareholder's Equity 9,724 7,500
Total Liabilities & Shareholders' Equity 28,464 29,038

A. Operating Profit Margin
B. Total Debt Ratio
C. Long-Term Debt Ratio
D. Return On Assets
E. Inventory Turnover

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4. Break-Even Analysis

5. Ratio Analysis
Required: Calculate the requested ratios using the financials below:
Income Statement (figures in millions of dollars)
Net sales 16,725
Cost of goods sold 5,372
Other expenses 5,105
Depreciation 1,823
Earnings before interest and taxes (EBIT) 4,425
Interest expense 750
Income before tax 3,675
Taxes 1,323
Net Income ...

Solution Summary

This provides the steps to calculate the Break-Even and Ratios

$2.19