The following selected information (in thousands) is available for Osborne Inc.: Instructions a. Calculate the following solvency

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The following selected information (in thousands) is available for Osborne Inc.:

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Instructions

a. Calculate the following solvency ratios of Osborne Inc. for 2021 and 2020.

1. Debt to total assets

2. Free cash fl ow

3. Interest coverage

b. Indicate whether each of the solvency ratios calculated in part (a) is better or worse in 2021.

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...
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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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