December 31 Cash and cash equivalents Restricted cash Net receivables Inventory Other current assets Current assets Current liabilities Total liabilities Stockholders' equity Year ended December 31, Loss before income taxes Interest expense Cash flows from operating activities Capital expenditures 2017 2016 $3,812,358 $3,837,660 157,656 107,852 515,381 499,142 2,263,537 2,067,454 268,365 194,465 7,017,297 6,706,573 7,674,670 5,827,005 23,022,980 16,750,167 6,076,836 6,538,353 Current ratio Quick ratio 0.91 0.58 a. Compute the current ratio and quick ratio for each year. Note: Round answers to two decimal places. 2017 2016 2017 $(2,209,032) Debt-to-equity ratio Times interest earned ratio 515,703 (58,321) (3,859,258) b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017. Note: Round answers to two decimal places. Use a negative sign with your answer, if appropriate. 1.15 0.76 ✔ 2017 3.79 (3.28)✔ 2016 2.56 c. Compute the cash burn rate for 2017. Note: Round answer to the nearest whole number. Use a negative sign with your answer, if appropria $0 *thousand per day
December 31 Cash and cash equivalents Restricted cash Net receivables Inventory Other current assets Current assets Current liabilities Total liabilities Stockholders' equity Year ended December 31, Loss before income taxes Interest expense Cash flows from operating activities Capital expenditures 2017 2016 $3,812,358 $3,837,660 157,656 107,852 515,381 499,142 2,263,537 2,067,454 268,365 194,465 7,017,297 6,706,573 7,674,670 5,827,005 23,022,980 16,750,167 6,076,836 6,538,353 Current ratio Quick ratio 0.91 0.58 a. Compute the current ratio and quick ratio for each year. Note: Round answers to two decimal places. 2017 2016 2017 $(2,209,032) Debt-to-equity ratio Times interest earned ratio 515,703 (58,321) (3,859,258) b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017. Note: Round answers to two decimal places. Use a negative sign with your answer, if appropriate. 1.15 0.76 ✔ 2017 3.79 (3.28)✔ 2016 2.56 c. Compute the cash burn rate for 2017. Note: Round answer to the nearest whole number. Use a negative sign with your answer, if appropria $0 *thousand per day
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:December 31
Cash and cash equivalents
Restricted cash
Net receivables
Inventory
Other current assets
Current assets
Current liabilities
Total liabilities
Stockholders' equity
Year ended December 31,
Loss before income taxes
Interest expense
Cash flows from operating activities
Capital expenditures
2017
2016
$3,812,358 $3,837,660
157,656 107,852
515,381
499,142
2,263,537 2,067,454
268,365 194,465
7,017,297 6,706,573
7,674,670 5,827,005
23,022,980 16,750,167
6,076,836 6,538,353
Current ratio
Quick ratio
0.91
0.58
a. Compute the current ratio and quick ratio for each year.
Note: Round answers to two decimal places.
2017
2016
2017
$(2,209,032)
Debt-to-equity ratio
Times interest earned ratio
515,703
(58,321)
(3,859,258)
1.15
0.76 ✓
b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017.
Note: Round answers to two decimal places. Use a negative sign with your answer, if appropriate.
2017
2016
3.79
(3.28)
2.56
c. Compute the cash burn rate for 2017.
Note: Round answer to the nearest whole number. Use a negative sign with your answer, if appropriate.
$0
*thousand per day
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