Selected financial data of two competitors, Blockbuster Inc. and Movie Gallery, Inc., in a recent year are

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Selected financial data of two competitors, Blockbuster Inc. and Movie Gallery, Inc., in a recent year are presented below and on page 91. (All dollars are in millions.)

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InstructionsFor each company, compute these values and ratios.(a) Working capital.(b) Current ratio. (Round to two decimal places.)(c) Debt to total assets ratio.(d) Free cash flow.(e) Earnings per share.(f) Compare the liquidity, profitability, and solvency of the twocompanies.

Solvency
Solvency 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...
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Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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