Selected balance sheet and income statement information from Verizon Communications, Inc., for 2005 through 2007 follows (

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Selected balance sheet and income statement information from Verizon Communications, Inc., for 2005 through 2007 follows ( \(\$\) millions).

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a. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the company is sufficiently liquid? Explain. What additional information about the accounting numbers comprising this ratio might be useful in helping you assess liquidity? Explain.

b. Compute times interest earned and the liabilities-to-equity ratio for each year and discuss any noticeable change.

c. What is your overall assessment of the company's liquidity and solvency from the analyses in

(a) and (b)? Explain.

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Financial Accounting For MBAs

ISBN: 9781934319345

4th Edition

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

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