Sharp Uniforms designs and manufactures uniforms for corporations throughout the United States and Canada. The company's stock is traded on the NASDAQ. Selected information from the company's financial statements follows. (assume that all sales were credit sales) SHARP (in millions) Current Year Prior Year Select Income Statement Information Net revenue $ 4,556 $ 4,320 Cost of goods sold 2,643 2,533 Selling, general, and administrative expenses 1,305 1,226 Interest expense 76 74 Income tax expense 235 190 Net income 378 321 Select Statement of Cash Flows Information Cash paid for interest 67 71 Cash flows from operating activities 618 559 Select Balance Sheet Information Cash and equivalents 517 360 Marketable securities — 8 Accounts receivable 512 511 Inventories 255 246 Prepaid expense and other current assets 30 27 Accounts payable 160 123 Current accrued expenses 387 350 Current portion of long-term debt 3 12 Other current liabilities 106 87 Long-term debt 1,310 1,305 Required: Compute the following ratios for the current year: (Round your answers to 2 decimal places.) Please help with cash coverage ratio.
Sharp Uniforms designs and manufactures uniforms for corporations throughout the United States and Canada. The company's stock is traded on the NASDAQ. Selected information from the company's financial statements follows. (assume that all sales were credit sales) SHARP (in millions) Current Year Prior Year Select Income Statement Information Net revenue $ 4,556 $ 4,320 Cost of goods sold 2,643 2,533 Selling, general, and administrative expenses 1,305 1,226 Interest expense 76 74 Income tax expense 235 190 Net income 378 321 Select Statement of Cash Flows Information Cash paid for interest 67 71 Cash flows from operating activities 618 559 Select Balance Sheet Information Cash and equivalents 517 360 Marketable securities — 8 Accounts receivable 512 511 Inventories 255 246 Prepaid expense and other current assets 30 27 Accounts payable 160 123 Current accrued expenses 387 350 Current portion of long-term debt 3 12 Other current liabilities 106 87 Long-term debt 1,310 1,305 Required: Compute the following ratios for the current year: (Round your answers to 2 decimal places.) Please help with cash coverage ratio.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 5MC
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Sharp Uniforms designs and manufactures uniforms for corporations throughout the United States and Canada. The company's stock is traded on the NASDAQ. Selected information from the company's financial statements follows. (assume that all sales were credit sales)
SHARP (in millions) |
|||||
Current Year | Prior Year | ||||
Select Income Statement Information | |||||
Net revenue | $ | 4,556 | $ | 4,320 | |
Cost of goods sold | 2,643 | 2,533 | |||
Selling, general, and administrative expenses | 1,305 | 1,226 | |||
Interest expense | 76 | 74 | |||
Income tax expense | 235 | 190 | |||
Net income | 378 | 321 | |||
Select Statement of |
|||||
Cash paid for interest | 67 | 71 | |||
Cash flows from operating activities | 618 | 559 | |||
Select |
|||||
Cash and equivalents | 517 | 360 | |||
Marketable securities | — | 8 | |||
512 | 511 | ||||
Inventories | 255 | 246 | |||
Prepaid expense and other current assets | 30 | 27 | |||
Accounts payable | 160 | 123 | |||
Current accrued expenses | 387 | 350 | |||
Current portion of long-term debt | 3 | 12 | |||
Other current liabilities | 106 | 87 | |||
Long-term debt | 1,310 | 1,305 | |||
Required:
Compute the following ratios for the current year: (Round your answers to 2 decimal places.)
Please help with cash coverage ratio.
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