Question

Compute and Interpret Liquidity, Solvency and Coverage Ratios Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements. Income Statement Year Ended December 31 (In millions) 2005 2004 2003 Net sales Products $ 31,518 $ 30,202 $ 27,290 Service 5,695 5,324 4,534 37,213 35,526 31,824 Cost of sales Products 27,892 27,667 25,306 Service 5,073 4,765 4,099 Unallocated coporate costs 803 914 443 33.768 33,346 29,848 3,445 2,180 1.976 Other income (expenses), net (449) (121) 43 Operating profit 2.996 2,059 2,019 Interest expense 370 425 487 Earnings before taxes 2,626 1,532 Income tax expense 801 368 479 Net earnings $ 1,825 $ 1,266 $ 1,053 1,634

Answer 1

2oos 2oo4 0 Deat 4784 5224 Equity 7867 7021 0.608 = 0.744 12 3194 Cash from opentings Total debts 2924 5224 4784 0.668 0.56 3 free openting 3194-865 Can flow 2424-769 z Total debt 4784 4784 0.487 0.450