Sample Essay

The Boeing Company has been under significant pressure to increase its performance and makes its operations more efficient. The annual statements for the Boeing Company for 2008 indicated that the company had total revenue of $60,909 million which culminated in a gross profit of $10,577 million. The most significant expenditure that was borne by the company pertained to research and development which was valued at $3,768 million. The net income for the Boeing Company for the financial year of 2008 pertained to $2,672 million after the deduction of additional interest expenses as well as adjustments for US GAAP.

The Balance Sheet of the in the Annual Statements for 2008 indicated that Boeing had total assets worth $53,779 million which comprised of cash and short term investments, total receivables, total inventory and current assets. The total liability of the company however is worth $55,073 million comprising of both long term and short term debt. This indicates that the debt of the company is much higher than the assets owned by Boeing. On the other hand the value of the equity as depicted in the balance sheet of the company for 2008 was at -$1,294 million with a common stock of worth $5,061million, additional paid in capital worth $3,456 million and retained earnings in terms of accumulated deficit worth $22,675 million. AS a result this indicates that the equity that is employed in the business by Boeing is significantly lesser than the level of debt employed by the company for its operations. This depicts that the level of debt in the company as well as in the industry (aerospace and aviation) is considerably high.

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