Question
Consider the following data from the most recent annual financial statements for two firms in the same industry. All amounts are in thousands. Average Cash
Consider the following data from the most recent annual financial statements for two firms in the same industry. All amounts are in thousands.
| Average | Cash | Expenditures | |
|---|---|---|---|
| Current | from | on | |
| Liabilities | Operations | PPE | |
| Opdahl Industries | $205,500 | $208,000 | $68,500 |
| Demsash Company | 274,000 | 227,500 | 54,800 |
a. Compute the operating cash flow to current liabilities (OCFCL) ratio for each firm.
| Numerator | Denominator | = | Result | ||
|---|---|---|---|---|---|
| Updahl | Answer | Answer | = | ||
| Demsash | Answer | Answer | = |
b. Compute the free cash flow for each firm. Updahl $Answer Demsash $Answer
c. Assume the industry average for OCFCL is .90. Do these firms appear to be in a stronger or weaker cash position than similar companies? Updahl AnswerStrongerWeaker Demsash AnswerStrongerWeaker
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Getting The Schools You Want A Step By Step Guide To Conducting Your Own Curriculum Management Audit
Authors: Kimberly M. Logan
1st Edition
0803965443, 978-0803965447
