E4-38. Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from...
E4-38. Compute and Interpret Liquidity and Solvency Ratios
Selected balance sheet and income statement information from Verizon Communications Inc. for 2012 and 2011 follows ($ millions).
Total Current Assets - Total Current Liabilities - Income Before Interest and Taxes - Interest Expense, Gross - Total Liabilities - Stockholders’ Equity
2015. . . . . . $22,280 $35,052 $32,974 $4,920 $226,798 $17,842
2014. . . . . . 29,499 27,987 21,379 4,915 218,940 13,676
a. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the company is sufficiently liquid? Explain. What additional information about the accounting numbers comprising this ratio might be useful in helping you assess liquidity? Explain.
b. Compute times interest earned and the liabilities-to-equity ratio for each year and discuss any noticeable change.
c. What is your overall assessment of the company’s liquidity and solvency from the analyses in parts a and b? Explain.
Homework Answers
Add Answer to:
E4-38. Compute and Interpret Liquidity and Solvency Ratios
Selected balance sheet and income statement information from...
E4-37. Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from...
E4-37. Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Comcast Corporation for 2015 and 2014 follows ($ millions). Total Income Before Interest and Taxes Total Current Liabilities Current Assets Interest Expense Total Liabilities* Stockholders' Equity 2015. .... $12,303 2014..... 13,531 $18,178 17,410 $15,673 15,001 $2,702 2,617 $112,596 106,118 $53,978 53,068 *Includes redeemable noncontrolling interests a. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the com-...
Please show all steps LO9 M3-28. Compute and Interpret Liquidity and Solvency Ratios VERIZON Selected balance...
Please show all steps
LO9 M3-28. Compute and Interpret Liquidity and Solvency Ratios VERIZON Selected balance sheet and income statement information from Verizon Communications Inc. follows. COMMUN- ICATIONS INC. (V2) $ millions 2015 2014 Current assets... ..$ 22,280 $ 29,499 Current liabilities 35,052 27,987 Total liabilities .226,798 218,940 Equity 17,842 13,676 Earnings before interest and taxes. 32,974 21,379 Interest expense, gross..... 4,920 4,915 Net cash flow from operating activities. ..... .38,930 30,631 Module 3 Profitability Analysis and Interpretation 3-46 a.Compute...
Compute and interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Verizon...
Compute and interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Verizon Communications, Inc., follows (in millions) 2015 Current assets $29,623 570.994 Current liabilities 28,064 27.050 Total liabilities 219.032 178,682 Equity 13,676 95,416 Earnings before interest and taxes 20,185 31,944 Interest expense 4,915 2,667 Net cash flow from operating activities 30,631 38,818 a. Compute the current ratio for each year. Round answers to two decimal places. 2014 2013 b. Compute times interest earned (TIE), the debt-to-equity...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information from...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information from Verizon Communications Inc. follows. ($ millions) 2016 2015 Current assets $ 26,395 $22,355 Current liabilities 30,340 35,052 Total debt 108,078 109,729 Total liabilities 220,148 226,333 Equity 24,032 17,842 Earnings before interest and taxes 27,059 33,060 Interest expense 4,376 4,920 Net cash flow from operating activities $ 22,715 $ 38,930 Round all your answers to two decimal places, 2016 net operating cash flow to total...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from CVS Health Corp. for 2014 through 2016 follows ($ millions). Total Current Assets Total Current Liabilities EBIT (Operating income) Interest Expense, Gross Total Liabilities Equity 2016 $30,931 $26,250 $10,282 $1,058 $57,628 $36,723 2015 29,047 23,169 9,398 838 55,234 37,092 2014 25,872 19,027 8,743 600 36,224 37,852 a. Compute times interest earned ratio for each year and discuss any trends for each. Round answers to...
Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Comcast...
Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Comcast Corporation for 2012 through 2014 follows (5 millions). Total Current Total Current Pretax Interest Total Stockholders Assets Liabilities Income Expense Assets Equity 2012 $19,991 $16,714 $11,609 $2,521 $164,971 $49,796 2013 14,075 18,912 11,115 2,574 158,813 51,058 2014 13,531 17,410 12,465 2,617 159,339 53,068 a. Compute the current ratio for each year. (Round your answers to one decimal place.) Current Ratio 2012 2013 2014 b....
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Nordstrom, Inc. for 2016 and 2015 follows. ole ($ millions) 2016 2015 Cash $ 595 $ 827 Accounts receivable 196 2,306 Current assets 3,014 5,224 Current liabilities 2,911 2,800 Long-term debt 2,795 3,123 Short-term debt 10 8 Total liabilities 6,827 6,805 Interest expense 153 156 Capital expenditures 1,082 861 Equity 871 2,440 Cash from operations 2,451 1,220 Earnings before interest and taxes 1,101 1,323...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
E4-37. Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Comcast Corporation for 2015 and 2014 follows ($ millions). Total Income Before Interest and Taxes Total Current Liabilities Current Assets Interest Expense Total Liabilities* Stockholders' Equity 2015. .... $12,303 2014..... 13,531 $18,178 17,410 $15,673 15,001 $2,702 2,617 $112,596 106,118 $53,978 53,068 *Includes redeemable noncontrolling interests a. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the com-...
Please show all steps
LO9 M3-28. Compute and Interpret Liquidity and Solvency Ratios VERIZON Selected balance sheet and income statement information from Verizon Communications Inc. follows. COMMUN- ICATIONS INC. (V2) $ millions 2015 2014 Current assets... ..$ 22,280 $ 29,499 Current liabilities 35,052 27,987 Total liabilities .226,798 218,940 Equity 17,842 13,676 Earnings before interest and taxes. 32,974 21,379 Interest expense, gross..... 4,920 4,915 Net cash flow from operating activities. ..... .38,930 30,631 Module 3 Profitability Analysis and Interpretation 3-46 a.Compute...
Compute and interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Verizon Communications, Inc., follows (in millions) 2015 Current assets $29,623 570.994 Current liabilities 28,064 27.050 Total liabilities 219.032 178,682 Equity 13,676 95,416 Earnings before interest and taxes 20,185 31,944 Interest expense 4,915 2,667 Net cash flow from operating activities 30,631 38,818 a. Compute the current ratio for each year. Round answers to two decimal places. 2014 2013 b. Compute times interest earned (TIE), the debt-to-equity...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information from Verizon Communications Inc. follows. ($ millions) 2016 2015 Current assets $ 26,395 $22,355 Current liabilities 30,340 35,052 Total debt 108,078 109,729 Total liabilities 220,148 226,333 Equity 24,032 17,842 Earnings before interest and taxes 27,059 33,060 Interest expense 4,376 4,920 Net cash flow from operating activities $ 22,715 $ 38,930 Round all your answers to two decimal places, 2016 net operating cash flow to total...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from CVS Health Corp. for 2014 through 2016 follows ($ millions). Total Current Assets Total Current Liabilities EBIT (Operating income) Interest Expense, Gross Total Liabilities Equity 2016 $30,931 $26,250 $10,282 $1,058 $57,628 $36,723 2015 29,047 23,169 9,398 838 55,234 37,092 2014 25,872 19,027 8,743 600 36,224 37,852 a. Compute times interest earned ratio for each year and discuss any trends for each. Round answers to...
Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Comcast Corporation for 2012 through 2014 follows (5 millions). Total Current Total Current Pretax Interest Total Stockholders Assets Liabilities Income Expense Assets Equity 2012 $19,991 $16,714 $11,609 $2,521 $164,971 $49,796 2013 14,075 18,912 11,115 2,574 158,813 51,058 2014 13,531 17,410 12,465 2,617 159,339 53,068 a. Compute the current ratio for each year. (Round your answers to one decimal place.) Current Ratio 2012 2013 2014 b....
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Nordstrom, Inc. for 2016 and 2015 follows. ole ($ millions) 2016 2015 Cash $ 595 $ 827 Accounts receivable 196 2,306 Current assets 3,014 5,224 Current liabilities 2,911 2,800 Long-term debt 2,795 3,123 Short-term debt 10 8 Total liabilities 6,827 6,805 Interest expense 153 156 Capital expenditures 1,082 861 Equity 871 2,440 Cash from operations 2,451 1,220 Earnings before interest and taxes 1,101 1,323...
Most questions answered within 3 hours.
-
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 1 hour ago -
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 1 hour ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 2 hours ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 3 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 3 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 5 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 6 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 6 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 7 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 7 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 8 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 8 hours ago