Homework answers / question archive / The Cullen Company Balance Statements (in millions) 2018 2017 Assets Current Assets Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets $ 8,558 2,128 6,386 6,759 7,786 31,617 22,304 84,547 5,798 $ 144,266 $ 5,947 -0 6,508 6,909 4,626 23,990 21,666 86,760 6,847 $ 139,263 Total current assets Property, plant and equipment, net Intangible assets Other noncurrent assets Total assets Liabilities and Stockholders' Equity Current Liabilities Accounts payable Other current liabilities Total current liabilities Long-term debt Other non-current liabilities Total liabilities Preferred Stock Common Stock Additional paid-in capital Treasury stock Retained earnings Total Stockholders' equity Total liabilities and stockholders' equity $ 8,461 8,999 16,266 33,726 19,811 20,753 74,290 1,111 4,009 63,911 (71,966) 84,990 82,055 $ 156,345 $ 8,777 8,828 12,432 30,037 19,111 21,406 70,554 1,137 4,009 63,538 (71,966) 80,197 76,915 $ 147,469 The Cullen Company Income Statements (in millions) Net sales Cost of goods sold Year Ended 2018 $83,062 42,460 Year Ended 2017 $82,581 41,391 40,602 41,190 Gross profit Selling, general, and administrative expense 25,314 26,552 15,288 709 14,638 667 Operating income Interest expense Other non-operating income (expense) 100 942 Earnings from operations before taxes Income taxes expense 14,679 3,178 14,913 3,391 Net earnings $11,501 $11,522 Shares outstanding 2,851,980 2,851,980 Dividends per share $ 2

The Cullen Company Balance Statements (in millions) 2018 2017 Assets Current Assets Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets $ 8,558 2,128 6,386 6,759 7,786 31,617 22,304 84,547 5,798 $ 144,266 $ 5,947 -0 6,508 6,909 4,626 23,990 21,666 86,760 6,847 $ 139,263 Total current assets Property, plant and equipment, net Intangible assets Other noncurrent assets Total assets Liabilities and Stockholders' Equity Current Liabilities Accounts payable Other current liabilities Total current liabilities Long-term debt Other non-current liabilities Total liabilities Preferred Stock Common Stock Additional paid-in capital Treasury stock Retained earnings Total Stockholders' equity Total liabilities and stockholders' equity $ 8,461 8,999 16,266 33,726 19,811 20,753 74,290 1,111 4,009 63,911 (71,966) 84,990 82,055 $ 156,345 $ 8,777 8,828 12,432 30,037 19,111 21,406 70,554 1,137 4,009 63,538 (71,966) 80,197 76,915 $ 147,469 The Cullen Company Income Statements (in millions) Net sales Cost of goods sold Year Ended 2018 $83,062 42,460 Year Ended 2017 $82,581 41,391 40,602 41,190 Gross profit Selling, general, and administrative expense 25,314 26,552 15,288 709 14,638 667 Operating income Interest expense Other non-operating income (expense) 100 942 Earnings from operations before taxes Income taxes expense 14,679 3,178 14,913 3,391 Net earnings $11,501 $11,522 Shares outstanding 2,851,980 2,851,980 Dividends per share $ 2

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The Cullen Company Balance Statements (in millions) 2018 2017 Assets Current Assets Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets $ 8,558 2,128 6,386 6,759 7,786 31,617 22,304 84,547 5,798 $ 144,266 $ 5,947 -0 6,508 6,909 4,626 23,990 21,666 86,760 6,847 $ 139,263 Total current assets Property, plant and equipment, net Intangible assets Other noncurrent assets Total assets Liabilities and Stockholders' Equity Current Liabilities Accounts payable Other current liabilities Total current liabilities Long-term debt Other non-current liabilities Total liabilities Preferred Stock Common Stock Additional paid-in capital Treasury stock Retained earnings Total Stockholders' equity Total liabilities and stockholders' equity $ 8,461 8,999 16,266 33,726 19,811 20,753 74,290 1,111 4,009 63,911 (71,966) 84,990 82,055 $ 156,345 $ 8,777 8,828 12,432 30,037 19,111 21,406 70,554 1,137 4,009 63,538 (71,966) 80,197 76,915 $ 147,469
The Cullen Company Income Statements (in millions) Net sales Cost of goods sold Year Ended 2018 $83,062 42,460 Year Ended 2017 $82,581 41,391 40,602 41,190 Gross profit Selling, general, and administrative expense 25,314 26,552 15,288 709 14,638 667 Operating income Interest expense Other non-operating income (expense) 100 942 Earnings from operations before taxes Income taxes expense 14,679 3,178 14,913 3,391 Net earnings $11,501 $11,522 Shares outstanding 2,851,980 2,851,980 Dividends per share $ 2.35 $ 2.30

Analyzing Short-Term Firm Liquity

a. Working capital

b. Current ratio

c. Quick ratio

d. Operating-cash-flow-to-current-liability ratio **

e. Accounts receivable turnover

f. Average collection period

g. Inventory turnover

h. Days' sales in inventory

For each ratio site, the definition of the ratio, the purpose of the ratio and the type of information the ratio is designed to communicate. Once all the ratios are completed prepare a results of analysis section below the ratios and discuss what the ratios tell about the company as its relates to:

a. Firm Profitability

b. Short term liquidity

c. Long term solvency

d. Common Stockholders

** Use $13,900 for operating cash flows in 2018 and $14,800 in 2017.