Barrick Gold Corporation reported the following selected information (in US$ millions): Instructions a. Calculate Barrick Gold?s debt

Question:

Barrick Gold Corporation reported the following selected information (in US$ millions):

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Instructions

a. Calculate Barrick Gold?s debt to total assets and interest coverage ratios for each year.

b. Based on the ratios calculated in part (a), what conclusions can you make about Barrick Gold?s solvency?

Taking It Further

Barrick Gold Corp. had total operating leases that required future payments of $68 million of which $21 million was expected to be paid in 2018. Explain the impact that an operating lease has on a company?s solvency ratios. Does this information change any of your conclusions in part (b)?

Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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