Question
Consider the following 2017 data for several pharmaceutical firms ($ millions): Average Current Liabilities Cash from Operations Expenditures on PPE Merck & Co., Inc. $17,909
Consider the following 2017 data for several pharmaceutical firms ($ millions):
| Average Current Liabilities | Cash from Operations | Expenditures on PPE | |
|---|---|---|---|
| Merck & Co., Inc. | $17,909 | $6,447 | $1,888 |
| Pfizer Inc. | 30,771 | 16,470 | 1,956 |
| Abbott Laboratories | 7,786 | 5,570 | 1,135 |
| Johnson & Johnson | 28,412 | 21,056 | 3,279 |
a. Compute the operating cash flow to current liabilities (OCFCL) ratio for each firm. (Round your answer to two decimal places.)
| Merck & Co., Inc. | ||
| Pfizer Inc. | ||
| Abbott Laboratories | ||
| Johnson & Johnson |
b. Compute the free cash flow for each firm.
| Merck & Co., Inc. | ||
| Pfizer Inc. | ||
| Abbott Laboratories | ||
| Johnson & Johnson |
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Financial Finesse An Accounting Guide For Entrepreneurs
Authors: TaShara Ramese
1st Edition
1732510903, 978-1732510906
