1. Compare three fictitious companies (Adamson, Malcomb, and Raffler) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Based on your computed ratio values, which company looks the least risky?

Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:Ulric J. Gelinas
Chapter16: The General Ledger And Business Reporting (gl/br) Process
Section: Chapter Questions
Problem 5P
icon
Related questions
Question

data tables attached with question

thanks for help

appreicated it

4ijt41j

ti4

j4y4

y4

 

Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Review the following financial
statements.
(Click the icon to view the financial statements.)
Read the requirement.
Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the curr
statement. Round the ratios to two decimal places.)
Requirement
1. Compare three fictitious companies (Adamson, Malcomb, and Raffler) by
calculating the following ratios: current ratio, debt ratio, leverage ratio,
and times-interest-earned ratio. Use year-end figures in place of averages
where needed for calculating the ratios in this exercise. Based on your
computed ratio values, which company looks the least risky?
Print
Done
X
Curr
Data table
(Amounts in millions or billions)
Income data
Total revenues
Operating income
Interest expense
Net income
Asset and liability data
(Amounts in millions or billions)
Total current assets
Long-term assets
Total current liabilities
Long-term liabilities
Common stockholders' equity
Print
Adamson
$ 9,726
295
45
22
428
120
237
67
244
Done
Malcomb
€ 7,909
226
34
13
4,921
1,536
2,247
2,273
1,937
Raffler
€136,299
5,649
719
450
129,228
89,304
72,600
110,967
34,965
X
Transcribed Image Text:Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Review the following financial statements. (Click the icon to view the financial statements.) Read the requirement. Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the curr statement. Round the ratios to two decimal places.) Requirement 1. Compare three fictitious companies (Adamson, Malcomb, and Raffler) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Based on your computed ratio values, which company looks the least risky? Print Done X Curr Data table (Amounts in millions or billions) Income data Total revenues Operating income Interest expense Net income Asset and liability data (Amounts in millions or billions) Total current assets Long-term assets Total current liabilities Long-term liabilities Common stockholders' equity Print Adamson $ 9,726 295 45 22 428 120 237 67 244 Done Malcomb € 7,909 226 34 13 4,921 1,536 2,247 2,273 1,937 Raffler €136,299 5,649 719 450 129,228 89,304 72,600 110,967 34,965 X
Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Review the following financial
statements.
(Click the icon to view the financial statements.)
Read the requirement.
Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Adamson, Malcomb, and Raffler. (Enter amounts in millions or billions as provided to you in the problem
statement. Round the ratios to two decimal places.)
Total current assets
Adamson
428
+
Total current liabilities = Current ratio
237
=
Transcribed Image Text:Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Review the following financial statements. (Click the icon to view the financial statements.) Read the requirement. Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Adamson, Malcomb, and Raffler. (Enter amounts in millions or billions as provided to you in the problem statement. Round the ratios to two decimal places.) Total current assets Adamson 428 + Total current liabilities = Current ratio 237 =
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Pkg Acc Infor Systems MS VISIO CD
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L