EB$-42$

The following information is taken from the $2016$ Form $10-$K for each of the following technology

companies.

a$.$ Compute the operating cash flow to current liabilities ratio. Compared to the average of $0\mathrm{.}5,$

assess as low, medium, or high, each company's ability to settle liabilities as they come

due.

b$.$ Compute the operating cash flow to CAPEX ratio. Compared to the rule of thumb of $1\mathrm{.}0,$

assess the company's solvency as either low, medium, or high.

c$.$ All three companies are in the mature stage of its life cycle. Consider the graphic shown

earlier in the appendix that graphs the cash flow patterns. Use the graphic to rank the

companies from least mature to most mature.