Selected balance sheet and income statement information from a company's Form 10- K is as follows:...

Transcribed Image Text:

Selected balance sheet and income statement information from a company's Form 10- K is as follows: Consolidated Balance Sheet As of December 31 2021 2020 Cash 5,820 4,170 Marketable Securities Accouns Receivable, net 11,254 8,366 Current assets 19,547 16,108 Current liabilities 20,963 20,136 Total liabilities Total equity EBIT Interest expense, gross 47,952 50,987 55,652 45,863 16,965 14,253 726 557 Required 1. What was the trend in these two years 2020 to 2021, in each of the current asset accounts? 2. Compute the following ratios for both years 2021 and 2020 a. Current ratio b. Quick ratio c. Times interest earned d. Liabilities-to-equity 3. In which year does the company appear more liquid? 4. In which year does the company appear more solvent? Selected balance sheet and income statement information from a company's Form 10- K is as follows: Consolidated Balance Sheet As of December 31 2021 2020 Cash 5,820 4,170 Marketable Securities Accouns Receivable, net 11,254 8,366 Current assets 19,547 16,108 Current liabilities 20,963 20,136 Total liabilities Total equity EBIT Interest expense, gross 47,952 50,987 55,652 45,863 16,965 14,253 726 557 Required 1. What was the trend in these two years 2020 to 2021, in each of the current asset accounts? 2. Compute the following ratios for both years 2021 and 2020 a. Current ratio b. Quick ratio c. Times interest earned d. Liabilities-to-equity 3. In which year does the company appear more liquid? 4. In which year does the company appear more solvent?

Answer rating: 100% (QA)

To analyze the trend in each of the current assets from 2020 to 2021 we need to calculate the percen... View the full answer