(a-1)
Liquidity ratios measure the short-term capacity of a company to pay its maturing obligations and to meet unanticipated requirements for cash. Liquidity ratios are
Solvency ratios
Solvency ratios measure the capacity of a company to sustain over a long period of time. Solvency ratios are debt to assets ratio, time interest earned ratio, and debt to equity ratio, and more.
To Compute: The working capital of M.
(a-2)
To Compute: The current ratio of M.
(a-3)
To Compute: The debt to assets ratio of M.
(a-4)
To Compute: The times interest earned ratio of M.
(b)
To Compute: The debt to assets ratio, of M after adjustment for Off-
To Discuss: The debt to assets ratio of M before, and after adjustment for Off-balance sheet lease.
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Financial Accounting: Tools for Business Decision Making, 8th Edition
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