Question

Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2001 (in millions). For additional information, their Web sites (and ticker symbols) are www.dupont.com (DD), www.dow.com (DOW), and www.ppg.com (PPG).
Income Statement
	DuPont	Dow	PPG
Revenues	$24,726	$27,805	$8,169
COGS	16,727	22,015	5,137
Gross Profit	7,999	5,790	3,032
SG&A Expenses	4,513	2,807	1,764
Net Income	4,339	(385)	387
Balance Sheet
	DuPont	Dow	PPG
Cash & Market Securities	$5,763	$220	$108
Receivables, net	3,903	5,098	1,416
Inventories	4,215	4,440	904
Total Current Assets	14,801	10,308	2,703
Fixed Assets, net	13,287	13,579	2,752
Total Assets	40,319	35,515	8,452
Total Current Liabilities	8,067	8,125	1,955
Total Liabilities	25,867	25,522	5,372
Total Equity	14,452	9,993	3,080
The following additional information is provided for fiscal year 2000 (in millions):
	DuPont	Dow	PPG
Inventory	$4,658	$3,463	$1,121
Receivables, net	4,552	5,385	1,563
Working Capital	2,401	1,387	550
Fixed Assets, net	13,287	13,579	2,752
Total Assets	39,426	27,645	9,125
Total Equity	13,299	9,686	3,097

** Please show formulas/work below the table. **

Common-size analysis for fiscal year 2001: Given the information presented on Sheet 1, a) Complete these tables using common-size analysis; b) Summarize the highlights from common-size analysis for these companies and indicate possible red flags following the tables.
Income Statement - Common Size
	DuPont	Dow	PPG
Revenues	100%	100%	100%
COGS
Gross Profit
SG&A Expenses
Net Income
Balance Sheet - Common Size
	DuPont	Dow	PPG
Cash & Market Securities
Receivables, net
Inventories
Total Current Assets
Fixed Assets, net
Total Assets	100%	100%	100%
Total Current Liabilities
Total Liabilities
Total Equity