Question: Comparing Firms Using Ratio Analysis Consider the following data for several firms from 2017 ($ millions): Average current liabilities Cash from operations Expenditures on PPE

Comparing Firms Using Ratio Analysis

Consider the following data for several firms from 2017 ($ millions):

Average current liabilities Cash from operations Expenditures on PPE Proceeds from the sale of PPE
Wal-Mart Stores, Inc. $72,725 $28,337 $10,051 $378
The Coca-Cola Company 26,863 6,995 1,675 104
Exxon Mobil Corporation 52,705 30,066 15,402 3,103

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

Wal-Mart
Coca-Cola
Exxon Mobil

b. Compute the free cash flow for each firm.

Wal-Mart
Coca-Cola
Exxon Mobil

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