Compute for the current ratio and describe the enterprise's capability to pay with current assets. Compute for debt ratio to determine the relative value of a company's debt

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Exon Oil Company
Balance Sheet
For the year ended December 31, 201A
Assets
Current Assets
Inventories
Trade and associated company
Short term investment
Current tax receivable
Cash at bank
Total
Non-current Assets
Property, plant and equipment
Intangible assets
Goodwill
Investments in associates
Financial investments
Total
Total assets
Liabilities
Current Liabilities
Account payables
Finance debt
Tax payable
Unearned revenues
Total current liabilities
Non-Current Liabilities
Finance debt
Bond payable
Wage payable
Interest payable
Total long-term liabilities
Total liabilities
Equity
Common stock
Retained Earning
Total equity
Total liabilities and equity
$ million
8,745
18,865
125
78
4,457
32,270
35,008
1,350
2,994
5,892
2,139
47,383
79,653
29,855
2,650
3,570
768
36,843
3,458
4,071
2,087
3,302
12,918
49,761
26,871
3,021
29,892
79,653
Transcribed Image Text:Exon Oil Company Balance Sheet For the year ended December 31, 201A Assets Current Assets Inventories Trade and associated company Short term investment Current tax receivable Cash at bank Total Non-current Assets Property, plant and equipment Intangible assets Goodwill Investments in associates Financial investments Total Total assets Liabilities Current Liabilities Account payables Finance debt Tax payable Unearned revenues Total current liabilities Non-Current Liabilities Finance debt Bond payable Wage payable Interest payable Total long-term liabilities Total liabilities Equity Common stock Retained Earning Total equity Total liabilities and equity $ million 8,745 18,865 125 78 4,457 32,270 35,008 1,350 2,994 5,892 2,139 47,383 79,653 29,855 2,650 3,570 768 36,843 3,458 4,071 2,087 3,302 12,918 49,761 26,871 3,021 29,892 79,653
1. Compute for the current ratio and describe the enterprise's capability to pay short-term liabilities
with current assets.
2. Compute for debt ratio to determine the relative value of a company's debt status.
Transcribed Image Text:1. Compute for the current ratio and describe the enterprise's capability to pay short-term liabilities with current assets. 2. Compute for debt ratio to determine the relative value of a company's debt status.
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