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Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet, income statement, and the statement of cash flows information from Start-up Solar Car Inc. (the
Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet, income statement, and the statement of cash flows information from Start-up Solar Car Inc. (the Company), for 2020 and 2019 follows (\$ millions). a. Compute the current ratio and quick ratio for each year and determine any trend in liquidity. - Note: Round your answers to the nearest million dollars. The Company's current ratio and quick ratio from 2019 to 2020 . b. Compute the debt-to-equity ratio for 2020 and 2019 and the times-interest-earned ratio for 2020. Determine the trend in the debt-to-equity ratio. - Note: Round your answers to the nearest million dollars. The Company's debt-to-equity ratio from 2019 to 2020. c. In 2018, Start-up Solar Car Inc. had a cash burn rate of approximately $40,000 per day. Do we need to compute the cash burn rate for 2020? We to compute the cash burn rate because exceeds in 2020. Almost every new company starts with free cash flow. But every successful new company must reach a point where it stops cash and begin cash. The 2020 report for this company appear to show that point may have been reached. Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet, income statement, and the statement of cash flows information from Start-up Solar Car Inc. (the Company), for 2020 and 2019 follows (\$ millions). a. Compute the current ratio and quick ratio for each year and determine any trend in liquidity. - Note: Round your answers to the nearest million dollars. The Company's current ratio and quick ratio from 2019 to 2020 . b. Compute the debt-to-equity ratio for 2020 and 2019 and the times-interest-earned ratio for 2020. Determine the trend in the debt-to-equity ratio. - Note: Round your answers to the nearest million dollars. The Company's debt-to-equity ratio from 2019 to 2020. c. In 2018, Start-up Solar Car Inc. had a cash burn rate of approximately $40,000 per day. Do we need to compute the cash burn rate for 2020? We to compute the cash burn rate because exceeds in 2020. Almost every new company starts with free cash flow. But every successful new company must reach a point where it stops cash and begin cash. The 2020 report for this company appear to show that point may have been reached
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