Ratio Analysis Presented below are summary financial data from Pompeo’s annual report:Amounts in millions Balance sheet Cash and cash equivalents $2,712Marketable securities 27,128Accounts receivable (net) 14,051Total current assets 58,632Total assets 184,617Current liabilities 66,017Long-term debt 12,738Shareholders’ equity 119,487Income Statement Interest expense 539Net income before taxes 24,512Calculate the following ratios: (round to two decimal places)a.Times-interest-earned ratio b.Quick ratio c.Current ratio

In the context of the given question, we are required to compute the Times-interest earned ratio,…

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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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Ratio Analysis

Presented below are summary financial data from Pompeo’s annual report:

Amounts in millions
Balance sheet
Cash and cash equivalents		$2,712
Marketable securities		27,128
Accounts receivable (net)		14,051
Total current assets		58,632
Total assets		184,617
Current liabilities		66,017
Long-term debt		12,738
Shareholders’ equity		119,487
Income Statement
Interest expense		539
Net income before taxes		24,512

Calculate the following ratios: (round to two decimal places)

a.	Times-interest-earned ratio
b.	Quick ratio
c.	Current ratio

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