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

Entrepreneurial Finance
6th Edition
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Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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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 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. 

 

Answer is complete but not entirely correct.
Receivable turnover ratio
8.91
Inventory turnover ratio
10.55
Current ratio
2.00
Cash ratio
Times interest earned ratio
0.79
9.07
Cash coverage ratio
2.93 X
Transcribed Image Text:Answer is complete but not entirely correct. Receivable turnover ratio 8.91 Inventory turnover ratio 10.55 Current ratio 2.00 Cash ratio Times interest earned ratio 0.79 9.07 Cash coverage ratio 2.93 X
Required:
Compute the following ratios for the current year: (Round your answers to 2 decimal places.)
X Answer is complete but not entirely correct.
Receivable turnover ratio
8.91
Inventory turnover ratio
10.55
Current ratio
2.00
Cash ratio
0.79
Times interest earned ratio
9.07
Cash coverage ratio
1.73 X
Transcribed Image Text:Required: Compute the following ratios for the current year: (Round your answers to 2 decimal places.) X Answer is complete but not entirely correct. Receivable turnover ratio 8.91 Inventory turnover ratio 10.55 Current ratio 2.00 Cash ratio 0.79 Times interest earned ratio 9.07 Cash coverage ratio 1.73 X
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