Companies that operate in different industries may have very different financial ratio values. These differences may grow
Question:
Compare three leading companies on their current ratio, debt ratio, and times-interest earned ratio. Compute three ratios for Company A, Company N, and Company S.
Based on your computed ratio values, which company looks the leastrisky?
Transcribed Image Text:
(Amounts in millions or billions) Company A Income data Total revenu Company N Company S $9,723 291 42 17,311 Operating income.. Interest expense Net inco E136,431 5,581 671 441 31 15 Asset and liability data Amounts in millions or billions) Total current assets Long term assets... Total current liabilities. Long-term liabilities. Stockholders' equity 431 139 197 137 5,932 39 170,140 45,315 72,400 110,737 32,318 2,341 1,433
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
Amounts in millions or billions Company Company Company Ratio A N S Current Total current assets 4...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
Question Posted:
Students also viewed these Accounting questions
-
Public companies that operate in different businesses or segments are required to report operating results for those segments. This requirement makes it possible to evaluate the performance of...
-
The debt-to-equity and times interest earned ratios were discussed in this chapter. Which is a better indicator of a companys ability to meet its required interest payment? Explain.
-
Joint Costs in different industries may be allocated using any of the following methods, except: A. Relative cubit footage of gases from a gas exploration process B. Relative sales value of fresh...
-
Recall the heat equation which we solved numerically T= = DTxx There we implemented an explicit numerical scheme (FTCS) which led to a conditionally stable solution - meaning that for certain time...
-
Use the expression in Problem 57 to find (a) The maximum range of a projectile with launch speed vi and (b) The launch angle q at which the maximum range occurs. In problem 57 The range R of a...
-
Advanced Technologies (AT) produces two compression machines that are popular with manufacturers of plastics: no. 165 and no. 172. Machine no. 165 has an average selling price of $60,000, whereas no....
-
A marketed asset's price \(x\) is governed by the mean reverting process where \(\eta, \theta\), and \(\sigma\) are positive constants and \(z\) is a Wiener process. (a) Let \(V(x, t)\) be a given...
-
Aztec Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of May 31 have been taken from...
-
Write a function report card where the user can enter each of his grades, after which the program prints out a report card with GPA. Remember to ask the user how many classes he took (think - why...
-
You are part of a research team investigating the effects of aerobic cardiovascular and moderate weight resistance training on the BMI (Body Mass Index) of moderately overweight but not obese teens...
-
Coastalview Imaging Ltd. issued $3,300,000 of 6% notes payable on December 31, 2010, at a price of 95. The notes term to maturity is 20 years. After four years, the notes may be converted into...
-
First Bank Financial Services is considering two plans for raising $800,000 to expand operations. Plan A is to borrow at 10%, and plan B is to issue 200,000 shares of common stock at $4.00 per share....
-
ComputerGuard offers computer consulting, training, and repair services. For the most recent fiscal year, profit was $328,100, as follows: Required a. Linda OFlaherty, the owner of ComputerGuard,...
-
What is intangible asset? Give five examples of intangible assets.
-
Discuss the importance of verification and valuation of assets.
-
What is a qualified report? Give a specimen of a qualified report of the auditor.
-
Discuss the status of an auditor in the company.
-
While examining the accounts of a company, you find the following items on credit side of profit and loss account: (a) Profit on revaluation of land. (b) Bounties received from Central Government....
-
What factors have influenced the trend toward establishing long-term relationships, as opposed to securing an immediate sale from the healthcare consumer?
-
Horse serum containing specific antibody to snake venom has been a successful approach to treating snakebite in humans. How do you think this anti-venom could be generated? What are some advantages...
-
The simplicity of the result is intuitive. Quite obviously, as one can see in the definition (7.3), the symmetry of the problem is much larger than the sole rotation in \(\mathcal{R}^{3}\). There is...
-
In its income statement for the year ended June 30, 2009, The Clorox Company reported the following condensed data (dollars in millions). Selling and Research and administrative expenses .... $ 715...
-
The trial balance of Pollard Company at the end of its fiscal year, August 31, 2012, includes these accounts: Beginning Inventory $18,700; Purchases $154,000; Sales Revenue $190,000; Freight-in...
-
Below is a series of cost of goods sold sections for companies A, F, L, and V. InstructionsFill in the lettered blanks to complete the cost of goods soldsections. A. L. Beginning inventory Purchases...
-
1. Mention five key organizational characteristics that the Cll research team identified for organizations with effective quality management systems. provide brief discussion of each and how it...
-
When a metal was exposed to photons at a frequency of 1.46 1015 s1, electrons were emitted with a maximum kinetic energy 3.60 10-19 J. G ? Calculate the work function, , of this metal. J/photon What...
-
No. 101 Debit Cash $ 2,400 Question 2 (10 pts) On November 1, 2024, the account balances of Schilling Equipment Repair were as follows. Accumulated Depreciation-Equipment A Clipboard Font Alignment...
Study smarter with the SolutionInn App