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(Click the icon to view the financial statements.) Read the requirement. ratios to two decimal places.) Companies that operate in different industries may have very

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(Click the icon to view the financial statements.) Read the requirement. ratios to two decimal places.)

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.) Current ratio Income from operations Interest expense Long-term liabilities Stockholders' equity Total assets Total current assets Total current liabilities Total liabilities Re Total revenues 1. Compare three fictitious companies (Adamson, Malcomb, and Rafter) 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? 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 $ 9,732 293 43 24 439 81 197 77 246 Done Malcomb 7,319 228 32 20 5,752 731 2,187 2,286 2,010 Raffler 136,408 5,608 687 438 159,840 60,614 72,000 110,977 37,477 Print Done

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