12

Ratio Analysis

Presented below are summary financial data from Pompeos annual report:

Amounts in millions
Balance sheet
Cash and cash equivalents		$4,972
Marketable securities		49,734
Accounts receivable (net)		25,759
Total current assets		107,492
Total assets		338,465
Current liabilities		94,310
Long-term debt		18,198
Shareholders equity		170,695
Income Statement
Interest expense		987
Net income before taxes		35,018

Calculate the following ratios: (round to two decimal places)

a.	Times-interest-earned ratio
b.	Quick ratio
c.	Current ratio