Comparing Firms Using Ratio Analysis

Consider the following 2013 data for several pharmaceutical firms ($ millions):

	Average Current Liabilities	Cash from Operations	Expenditures on PPE	Proceeds from the Sale of PPE
Merck & Co., Inc.	$18,108	$11,654	$1,548	$0
Pfizer Inc.	26,276	17,765	1,206	0
Abbott Laboratories	11,394	3,324	1,145	0
Johnson & Johnson	24,969	17,414	3,595	458

a. Compute the operating cash flow to current liabilities (OCFCL) ratio for each firm. (Round your answer to two decimal places.)

	Merck & Co., Inc.	Answer
	Pfizer Inc.	Answer
	Abbott Laboratories	Answer
	Johnson & Johnson	Answer

b. Compute the free cash flow for each firm.

	Merck & Co., Inc.	Answer
	Pfizer Inc.	Answer
	Abbott Laboratories	Answer
	Johnson & Johnson	Answer