The following data were taken from the 2013 financial statements of Goodman Fielder Limited. (All dollars in millions.) 

Required

Perform each of the following:

(a) Calculate the debt to assets ratio for each year.

(b) Calculate the cash debt coverage for each year. (Total liabilities at year-end 2011 were $1 482.8M.)

(c) Discuss Goodman Fielder’s solvency in 2013 versus 2012.

(d) Discuss Goodman Fielder’s ability to finance its investment activities with cash provided by operating activities, and how any deficiency would be met. 

Transcribed Image Text:

Current assets Total assets Current liabilities Total liabilities Total equity Cash provided by operating activities Cash generated by (used in) investing activities 2013 $ 720.4 2776.8 382.8 1224.5 1552.3 178.7 148.9 2012 $718.8 2693.8 434.1 1318.7 1375.1 129.0 (84.6)