Tools For All (TFA) is a global supplier of tools and related accessories. The following data were taken from the company’s 2018 annual report. Dollar amounts are in millions. Fiscal Years Ending December 31, 2018 December 31, 2017 Current assets $4,547.8 $4,500.0 Current liabilities 4,091.2 4,389.9 Total assets 19,744.0 19,506.9 Total liabilities 11,170.4 10,423.5 Required a. Compute TFA’s current ratios for 2018 and 2017. (Round your answers to 2 decimal places.) b. Compute TFA’s debt-to-assets ratios for 2018 and 2017. (Round your answers to 2 decimal places.) c. Based on the ratios computed in Requirements a and b, did TFA’s liquidity get better or worse from 2017 to 2018? d. Based on the ratios computed in Requirements a and b, did TFA’s solvency get better or worse from 2017 to 2018?
Tools For All (TFA) is a global supplier of tools and related accessories. The following data were taken from the company’s 2018 annual report. Dollar amounts are in millions. Fiscal Years Ending December 31, 2018 December 31, 2017 Current assets $4,547.8 $4,500.0 Current liabilities 4,091.2 4,389.9 Total assets 19,744.0 19,506.9 Total liabilities 11,170.4 10,423.5 Required a. Compute TFA’s current ratios for 2018 and 2017. (Round your answers to 2 decimal places.) b. Compute TFA’s debt-to-assets ratios for 2018 and 2017. (Round your answers to 2 decimal places.) c. Based on the ratios computed in Requirements a and b, did TFA’s liquidity get better or worse from 2017 to 2018? d. Based on the ratios computed in Requirements a and b, did TFA’s solvency get better or worse from 2017 to 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Tools For All (TFA) is a global supplier of tools and related accessories. The following data were taken from the company’s 2018 annual report. Dollar amounts are in millions.
| Fiscal Years Ending | ||
|---|---|---|
| December 31, 2018 | December 31, 2017 | |
| Current assets | $4,547.8 | $4,500.0 |
| Current liabilities | 4,091.2 | 4,389.9 |
| Total assets | 19,744.0 | 19,506.9 |
| Total liabilities | 11,170.4 | 10,423.5 |
Required
a. Compute TFA’s
b. Compute TFA’s debt-to-assets ratios for 2018 and 2017. (Round your answers to 2 decimal places.)
c. Based on the ratios computed in Requirements a and b, did TFA’s liquidity get better or worse from 2017 to 2018?
d. Based on the ratios computed in Requirements a and b, did TFA’s solvency get better or worse from 2017 to 2018?
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