Use the following ratios from Walmart, Target, and Dollar General to answer Questions 12-13. Ratio Liabilities-to-equity ratio Times interest earned Cash from operations to total debt Target Walmart Walmart 1.246 11.49 0.787 Target This cannot be determined based on the information given O Dollar General 1.275 15.11 0.447 Dollar General 1.17 Based on the information given, which of the three companies is better able to cover its interest expense with current income? 7.85 0.974
Use the following ratios from Walmart, Target, and Dollar General to answer Questions 12-13. Ratio Liabilities-to-equity ratio Times interest earned Cash from operations to total debt Target Walmart Walmart 1.246 11.49 0.787 Target This cannot be determined based on the information given O Dollar General 1.275 15.11 0.447 Dollar General 1.17 Based on the information given, which of the three companies is better able to cover its interest expense with current income? 7.85 0.974
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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