Some balance sheet information is shown below: (all values in millions of dollars).a. What change in the book value of the company's equity took place at the end of 2018?b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain.a. What change in the book value of the company's equity took place at the end of 2018?The book value of equity ▼ increased or decreased by $_____ billion from the end of the previous year, and was ▼ positive or negative. (Select from the drop-down menus and round to three decimal places.) Data tableBalance Sheet:3/31/201912/31/20189/30/20186/30/2018AssetsCurrent AssetsCash and cash equivalents293300255232Net receivables401362385460InventoryOther current assets37434243730660435345Total Current Assets1,1281,0471,1301,043Long-term investmentsProperty, plant, and equipmentGoodwill128972009799919951,052744748736742Other assets777827906797Total Assets3,7563,7103,7673,834LiabilitiesCurrent LiabilitiesAccounts payableShort/current long-term debt8761,467922980410173288Other current liabilitiesTotal Current Liabilities1,2862,3811,4692,1241,0951,268Long-term debtOther liabilities474475435574559Total Liabilities5514,102- 3464,167- 4572,1281,6393,7672,294Total Shareholder's EquityTotal Liabilities and Shareholder's Equity1,5403,7563,7103,834 CorrectSome balance sheet information is shown here E (all values in millions of dollars).a. What change in the book value of the company's equity took place at the end of 2018?b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain.a. What change in the book value of the company's equity took place at the end of 2018?(Select from the drop-down menus and round toThe book value of equityV by $billion from the end of the previous year, and wasthree decimal places.)

Answered: Some balance sheet information is shown…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Some balance sheet information is shown below: (all values in millions of dollars). a. What change in the book value of the company's equity took place at the end of 2018? b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain. a. What change in the book value of the company's equity took place at the end of 2018? The book value of equity ▼ increased or decreased by $_____ billion from the end of the previous year, and was ▼ positive or negative. (Select from the drop-down menus and round to three decimal places.)

Data table
Balance Sheet:
3/31/2019
12/31/2018
9/30/2018
6/30/2018
Assets
Current Assets
Cash and cash equivalents
293
300
255
232
Net receivables
401
362
385
460
Inventory
Other current assets
374
342
437
306
60
43
53
45
Total Current Assets
1,128
1,047
1,130
1,043
Long-term investments
Property, plant, and equipment
Goodwill
128
97
200
979
991
995
1,052
744
748
736
742
Other assets
777
827
906
797
Total Assets
3,756
3,710
3,767
3,834
Liabilities
Current Liabilities
Accounts payable
Short/current long-term debt
876
1,467
922
980
410
173
288
Other current liabilities
Total Current Liabilities
1,286
2,381
1,469
2,124
1,095
1,268
Long-term debt
Other liabilities
474
475
435
574
559
Total Liabilities
551
4,102
- 346
4,167
- 457
2,128
1,639
3,767
2,294
Total Shareholder's Equity
Total Liabilities and Shareholder's Equity
1,540
3,756
3,710
3,834

Correct
Some balance sheet information is shown here E (all values in millions of dollars).
a. What change in the book value of the company's equity took place at the end of 2018?
b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain.
a. What change in the book value of the company's equity took place at the end of 2018?
(Select from the drop-down menus and round to
The book value of equity
V by $
billion from the end of the previous year, and was
three decimal places.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution