Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected
Question:
Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected information (in millions):
___________________________________2012...............2011
Current assets.................................$103.5...............$ 77.3
Non-current assets..............................217.8................422.5
Current liabilities..................................30.8..................78.0
Non-current liabilities..........................114.8................218.2
Instructions
(a) Calculate the working capital, current ratio, and debt to total assets ratio for each year.
(b) Did Huntingdon's liquidity and solvency improve or worsen during 2012?
(c) Using the data in the chapter, compare Huntingdon's liquidity and solvency with that of Plazacorp, First Capital Realty, and the industry for 2012 and 2011.
SolvencySolvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
Step by Step Answer:
a in millions 2012 2011 Working capital Working capital 1035 308 727 773 780 07 Current ratio 1035 3...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
