Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 13, Problem 13.15BE
To determine
Formula:
To compute: Free cash flow
Given info: Items from financial statements
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Ratio AnalysisPresented below are summary financial data from Pompeo’s annual report:
Amounts in millions
Balance Sheet
Cash and Cash Equivalents
$1,865
Marketable Securities
19,100
Accounts Receivable (net)
9,367
Total Current Assets
39,088
Total Assets
123,078
Current Liabilities
39,255
Long-Term Debt
7,279
Shareholders’ Equity
68,278
Income Statement
Interest Expense
375
Net Income Before Taxes
14,007
Calculate the following ratios:(Round to 2 decimal points)
a. Times-interest-earned ratio
Answer
b. Quick ratio
Answer
c. Current ratio
Answer
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Ratio Analysis
Presented below are summary financial data from Pompeo's annual report:
Amounts in millions
Balance sheet
Cash and cash equivalents
$6,328
Marketable securities
63,298
Accounts receivable (net)
32,785
Total current assets
136,808
Total assets
430,773
Current liabilities
113,172
Long-term debt
21,837
Shareholders' equity
204,834
Income Statement
Interest expense
1,257
Net income before taxes
42,021
Calculate the following ratios: (round to two decimal places)
a. Times-interest-earned ratio
b. Quick ratio
Selected financial data for Wilmington Corporation is presented below.
WILMINGTON CORPORATION
Balance Sheet
Dec. 31, Year 7
Dec. 31, Year 6
Current Assets
Cash and cash equivalents
$519,159
$274,579
Marketable securities
166,106
187,064
Accounts receivable (net)
232,548
260,190
Inventories
382,044
352,022
Prepaid expenses
49,832
22,958
Other current assets
83,053
85,029
Total Current Assets
1,432,742
1,181,842
Property, plant and equipment
1,384,217
625,421
Long-term investment
568,003
425,000
Total Assets
$3,384,962
$2,232,263
Current Liabilities
Short-term borrowings
$306,376
$170,419
Current portion of long-term debt
155,000
168,000
Accounts payable
228,700
257,631
Accrued liabilities
246,292
150,285
Income taxes payable
87,962
161,020
Total Current Liabilities
1,024,330
907,355
Long-term debt
500,000
300,000
Deferred income taxes
193,515
236,164
Total Liabilities
1,717,845
1,443,519
Common stock
$425,250…
Chapter 13 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - (a) Distinguish among the following bases of...
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - Prob. 16QCh. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 22QCh. 13 - Prob. 13.1BECh. 13 - Prob. 13.2BECh. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - Prob. 13.11BECh. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Prob. 13.14BECh. 13 - Prob. 13.15BECh. 13 - Prob. 13.1DIECh. 13 - Prob. 13.2DIECh. 13 - Prob. 13.3DIECh. 13 - Prob. 13.1ECh. 13 - Prob. 13.2ECh. 13 - Prob. 13.3ECh. 13 - Prob. 13.4ECh. 13 - Prob. 13.5ECh. 13 - Prob. 13.6ECh. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Prob. 13.12ECh. 13 - Prob. 13.13ECh. 13 - Prob. 13.1APCh. 13 - Prob. 13.2APCh. 13 - Prob. 13.3APCh. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.1EYCTCh. 13 - Prob. 13.2EYCTCh. 13 - Prob. 13.3EYCTCh. 13 - Prob. 13.4EYCTCh. 13 - Prob. 13.7EYCTCh. 13 - Prob. 13.8EYCTCh. 13 - Prob. 13.9EYCTCh. 13 - Prob. 13.1IFRS
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