Comparing Firms Using Ratio Analysis

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

Average Cash from Expenditures Proceeds from

Current Liabilities Operations on PPE the Sale of PPE

Shopmart, Inc. $$191,272$ $$60,612$ $$25,692$ $$770$

Cola Company $54,83923,6262,825454$

Retail Corporation $40,35217,0817,265151$

a$.$ Compute the operating cash flow to current liabilities $($OCFCL$)$ ratio for each firm.

Company Numerator $-$: Denominator $=$ Result

Shopmart, Inc. Answer $1$

$-$: Answer $2$

$=$

Cola Company Answer $3$

$-$: Answer $4$

$=$

Retail Corporation Answer $5$

$-$: Answer $6$

$=$

b$.$ Compute the free cash flow for each firm.

Company $?-?=$ Result

Shopmart, Inc. Answer $7$

$-$ Answer $8$

$=$

$0$

Cola Company Answer $9$

$-$ Answer $10$

$=$

$0$

Retail Corporation Answer $11$

$-$ Answer $12$

$=$

$0$

c$.$ Comment on the results of your computations.