Question: Selected information (in USD millions) for Google Inc. and Yahoo! Inc. for 2010 follows: Instructions (a) Calculate the cash current debt coverage ratio, cash total

Selected information (in USD millions) for Google Inc. and Yahoo! Inc. for 2010 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 (a), compare the liquidity and solvency of the two companies.

Net cash provided by operating activities Average current liabilities Average total liabilities Net capital expenditures Dividends paid Google $11,081.0 6,371.5 8,051.5 4,108.0 0 Yahoo! $1,240.2 1,671.8 2,374.5 714.1

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a USD millions Google Yahoo Cash current debt coverage 11081 63715 17 times 12402 1... View full answer

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