Question: Selected information (in U.S. $ millions) for Google Inc. and Yahoo! Inc. for 2012 follows: Instructions (a) Calculate the cash current debt coverage ratio, cash

Selected information (in U.S. $ millions) for Google Inc. and Yahoo! Inc. for 2012 follows:

Instructions
(a) Calculate the cash current debt coverage ratio, cash total debt coverage ratio, and free cash flow for each company.
(b) Using the ratios calculated in part (a), compare the liquidity and solvency of the two companies?

Net cash provided (used) by operating activities Average current liabilities Average total liabilities Net capital expenditures Dividends paid Google $16,619 11,625 18,256 3,273 Yahoo! S(281.6) 1,248.8 2,349.5 505.5

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