Question: The following selected information was taken from Barrick Gold Corporation's financial statements (in U.S. millions): Instructions (a) Calculate each of the following ratios for 2010

The following selected information was taken from Barrick Gold Corporation's financial statements (in U.S. millions):

Instructions
(a) Calculate each of the following ratios for 2010 and 2009. Industry ratios are shown in parentheses.
1. Current ratio (2010 2.4:1:1; 2009, 1.9:1) 2. Receivables turnover (2010, 17.6 times; 2009, 19.5 times)
3. Inventory turnover (2010, 3.6 times; 2009, 4.0 times)
4. Debt to total assets (2010, 16.0%; 2009, 17.4%)
5. Times interest earned (2010, 4.6 times; 2009, 16.3 times)

(b) Based on your results in (a), comment on Barrick Gold's liquidity and solvency.
(c) Barrick Gold has three pages of disclosure in the notes to its statements about pending litigation. Discuss the implications of this information for your analysis.

Statement of financial Accounts receivable Total current assets Current liabilities 4 2 1.844 Cost of goods sold Income tax expense Profit (loss)

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a in USD millions 2010 2009 1 Current ratio 7113 291 4938 281 2489 1773 2 Receivables turnover 10924 366 times 8136 363 times 346 251 251 197 2 2 3 In... View full answer

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