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EYK4-3. ?. ?????? ?? ?? ??????? Business Decision Problem Diskman, a maker of computer memory devices, reports the follow- ing information in its financial statements.

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EYK4-3. ?. ?????? ?? ?? ??????? Business Decision Problem Diskman, a maker of computer memory devices, reports the follow- ing information in its financial statements. Assume that you are a loan officer at a major bank and have been assigned the task of evaluating whether to extend a loan for a plant expansion to the company. 2015 2014 (in millions) Current assets ..... Total assets .... Current liabilities. .... Total liabilities. .. Retained earnings .. Net sales. ..... Cost of goods sold... Net income....... Cash flow from operating activities .. Cash flow from investing activities. . Cash flow from financing activities. ...... Expenditures for property, plant, and equipment 2016 $ 4,356 10,175 1,093 3,114 1,797 5,662 3,223 987 1,054 $4,033 8,777 960 2,997 813 4,827 2,565 1,300 1,452 (2,715) 991 (108) $2,915 6,002 871 2,093 (487) 3,567 2,282 415 488 (375) 25 (60) (667) (48) (193) Required a. Calculate the company's current ratio, debt-to-total-assets ratio, return on sales ratio, and free cash flow for each year. b. Comment on Diskman's liquidity, solvency, and profitability. C. Based on what you have learned about Diskman, would you recommend offering the com pany a loan

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