Compute Ratios from Statement of Cash Flow Information Use the following information, taken from each of the
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Question:
Cash from | Current | ||
---|---|---|---|
Company | Operations | Liabilities | CAPEX |
Logitech International | $183.111 | $414.930 | $56.615 |
Steelcase Inc | 186.400 | 557.500 | 93.400 |
Chico's FAS Inc. | 196.991 | 298.131 | 84.841 |
Vista Outdoor Inc | 198.002 | 368.901 | 41.526 |
Avnet Inc | 224.315 | 4,942.493 | 147.548 |
a. Compute the operating cash flow to current liabilities ratios.
b. Rank-order each company from low to high liquidity (ability to pay liabilities as they come due).
c. Compute the operating cash flow to CAPEX ratio. Compared with the rule of thumb of 1.0, assess the company's solvency as either low, medium, or high.
d. Rank-order each company from low to high solvency.
Round answers to two decmial places. For ranking, 1 is the highest and 5 is the lowest.
Operating Cash | ||||
---|---|---|---|---|
Flow to Current | Liquidity | Operating Cash | Solvency | |
Company | Liabilities | Rank | Flow to CAPEX | Rank |
Logitech International | Answer | Answer12345 | Answer | Answer12345 |
Steelcase Inc | Answer | Answer12345 | Answer | Answer12345 |
Chico's FAS Inc. | Answer | Answer12345 | Answer | Answer12345 |
Vista Outdoor Inc | Answer | Answer12345 | Answer | Answer12345 |
Avnet Inc | Answer | Answer12345 | Answer | Answer12345 |
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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