For Questions 46, use the information about Global Business Machine (GBM) provided below.

GBMCorp. balance sheet (in $ million):

	FYE 2032	FYE 2031
Assets:
Cash and short-term investments	958	746
Accounts receivable	126	135
Inventories	196	176
Other current assets	45	31
Net plant, property & equipment	1,478	1,359
Intangible assets	126	120
Total assets	2,929	2,567
Liabilities and Equity:
Short-term borrowings	25	38
Current portion of long-term debt	45	40
Accounts payable	185	226
Other current liabilities	1,142	921
Long-term Debt	450	430
Total Liabilities	1,847	1,655
Shareholders' Equity	1,082	912
Liabilities and Shareholders' Equity	2,929	2,567

GBM Corp. income statement (in $ million):

	FY 2032
Net Sales	3,210
Cost of Goods Sold	1,910
Operating expense	400
EBIT	900
Interest expense	424
Income tax	114
Net Income	362

Question 4 [5 pts]

Use the information about GBM Corp. provided above to answer questions (a) and (b).

Compute current ratioand quick ratiofor FY 2032 (no need to do this for FY 2031).

Answer (show the steps/calculation toward yourresults):

Compute the ratio of total liabilities to assets and interest coverage based on EBIT.

Answer (show the steps/calculation toward yourresults):

Question 5 [5 pts]

Use the information about GBM Corp. provided above to determine accounts receivable turnover, inventory turnover, and accounts payable turnover for FY 2032. *Use average balance for all B/S items and use the definitions introduced in the class.

Answer (show the steps/calculation toward yourresults):

Question 6 [5 pts]

Use the information about GBM Corp. provided above tocompute the cash operating cycle to determine the number of days the firm is likely in need of financing from nonoperating sources. (Hint: need to compute days accounts receivable, days inventories, and days accounts payable)

Answer (show the steps/calculation toward yourresults):