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BE10.18 (LO 5) Suppose the 2020 adidas financial statements contain the following selected data (in millions). $169 113 245 C
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Answer #1

A. Working capital = current assets - current liabilities

= 4485 - 2836

= 1,649

B. Current Ratio = current assets / current liabilities

= 4485 / 2836

= 1.58 : 1

C. Debt to assets ratio = debt /total assets

= (total liabilities - current liabilities) / total assets

= (5099 - 2836) / 8875

= 0.255 : 1

D. Times interest earned = EBIT / interest expense

= (245 + 113 + 169) / 169

= 3.19 : 1

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