ACC- CHrysler
Before Chrysler merged to become DaimierChrysler AG, they were presented with a takeover bid of $55 per share by MGM billionaire Kirk Kerkorian and former Chrysler chairman Lee Iacocca. Kirk Kerkorian was a stockholder in Chrysler and an experienced takeover financier who apparently found Chrysler to be a good buy. Chrysler rejected the offer, however, stating that the firm was not for sale. Further, many Wall Street experts felt that Kerkorian could not come up with the $20 billion necessary to complete the deal.
After Chrysler rejected Kirk Kerkorian's bid of $55 per share, Kerkorian decided to have his people repeat the analysis of the firm's financial performance over the two most recent years to determine if he should increase his bid in this friendly takeover attempt. To measure the financial performance of Chrysler over the past two years, key financial ratio will have to be computed and compared with industry averages. To help in this endeavor, Chrysler's financial statements are found on the following pages.
Chrysler Corporation's Balance Sheet
December 31 (in million $s)
Assets
This year
Last year
Current Assets
Cash and cash equivalents
5,543
5,145 Marketable securities
2,582
3,226 Accounts receivable
2,003
1,695 Inventories
4,448
3,356 Prepaid taxes
985
1,330 Finance receivables
13,623
12,433 Total Current Assets
29,184
27,185
Non-current Assets
Property & equipment
20,468
18,281 Less: Accum. Depreciation
7,873
7,208 Net Plant & Equipment
12,595
11,073 Special tools
3,566
3,643 Intangible assets
2,082
2,162 Deferred tax assets
490
395 Other assets
5,839
5,081 Total Non-current Assets
24,572
22,354
Total Assets
53,756
49,539
Liabilities
Current Liabilities
Accounts Payable
8,290
7,826 Short-term debt
2,674
4,645 Accrued Liabilities
7,032
5,582 Other payments
1,661
811 Total Current Liabilities
19,657
After Chrysler rejected Kirk Kerkorian's bid of $55 per share, Kerkorian decided to have his people repeat the analysis of the firm's financial performance over the two most recent years to determine if he should increase his bid in this friendly takeover attempt. To measure the financial performance of Chrysler over the past two years, key financial ratio will have to be computed and compared with industry averages. To help in this endeavor, Chrysler's financial statements are found on the following pages.
Chrysler Corporation's Balance Sheet
December 31 (in million $s)
Assets
This year
Last year
Current Assets
Cash and cash equivalents
5,543
5,145 Marketable securities
2,582
3,226 Accounts receivable
2,003
1,695 Inventories
4,448
3,356 Prepaid taxes
985
1,330 Finance receivables
13,623
12,433 Total Current Assets
29,184
27,185
Non-current Assets
Property & equipment
20,468
18,281 Less: Accum. Depreciation
7,873
7,208 Net Plant & Equipment
12,595
11,073 Special tools
3,566
3,643 Intangible assets
2,082
2,162 Deferred tax assets
490
395 Other assets
5,839
5,081 Total Non-current Assets
24,572
22,354
Total Assets
53,756
49,539
Liabilities
Current Liabilities
Accounts Payable
8,290
7,826 Short-term debt
2,674
4,645 Accrued Liabilities
7,032
5,582 Other payments
1,661
811 Total Current Liabilities
19,657