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Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2. Year 1 Year 2 (amounts in millions) Balance sheet Cash and cash equivalents Marketable securities Accounts receivable (net) Total current assets Total assets $6,680 $6,050 3,794 2,749 4,373 3,378 17,801 15,283 33,435 31,138 Current liabilities 9,843 6,890 Current portion of long-term debt 1,883 231 Long-term debt 11,463 11,364 Shareholders' equity 10,202 11,208 Income statement Interest expense Net income before taxes $310 $349 4,718 4,816 Round all answers to two decimal places. Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%). Liquidity Year 1 Year 2

Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2. Year 1 Year 2 (amounts in millions) Balance sheet Cash and cash equivalents Marketable securities Accounts receivable (net) Total current assets Total assets $6,680 $6,050 3,794 2,749 4,373 3,378 17,801 15,283 33,435 31,138 Current liabilities 9,843 6,890 Current portion of long-term debt 1,883 231 Long-term debt 11,463 11,364 Shareholders' equity 10,202 11,208 Income statement Interest expense Net income before taxes $310 $349 4,718 4,816 Round all answers to two decimal places. Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%). Liquidity Year 1 Year 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2. Year 1 Year 2 (amounts in millions) Balance sheet Cash and cash equivalents $6,680 Marketable securities 3,794 2,749 Accounts receivable (net) 4,373 3,378 Total current assets 17,801 15,283 Total assets 33,435 31,138 Current liabilities 9,843 6,890 Current portion of long-term debt 1,883 231 Long-term debt 11,463 11,364 Shareholders' equity 10,202 11,208 Income statement Interest expense Net income before taxes Liquidity Round all answers to two decimal places. Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%). Quick ratio Cash and marketable securities to total assets Current ratio Solvency Long-term debt to total assets $6,050 $310 $349 4,718 4,816 Long-term debt to shareholders' equity Interest coverage ratio Year 1 Answer Answer Answer Answer Answer Answer % % Year 2 Answer Answer Answer Answer Answer Answer % %
Transcribed Image Text:Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2. Year 1 Year 2 (amounts in millions) Balance sheet Cash and cash equivalents $6,680 Marketable securities 3,794 2,749 Accounts receivable (net) 4,373 3,378 Total current assets 17,801 15,283 Total assets 33,435 31,138 Current liabilities 9,843 6,890 Current portion of long-term debt 1,883 231 Long-term debt 11,463 11,364 Shareholders' equity 10,202 11,208 Income statement Interest expense Net income before taxes Liquidity Round all answers to two decimal places. Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%). Quick ratio Cash and marketable securities to total assets Current ratio Solvency Long-term debt to total assets $6,050 $310 $349 4,718 4,816 Long-term debt to shareholders' equity Interest coverage ratio Year 1 Answer Answer Answer Answer Answer Answer % % Year 2 Answer Answer Answer Answer Answer Answer % %
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