In the attached files are the questions to be answered and the information needed to answer them. Answer all parts of the question completely.

Questions: 4-24, 4-26

4-24:

a) Compute times interest earned ratio for each year and discuss any trends for each.

b) Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the company is sufficiently liquid? Explain. What additional information about the accounting numbers compromising this ratio might be useful in helping you assess liquidity?

c) Compute the total liabilities-to-equity ratio for each year and discuss trends for each.

d) What is your overall assessment of the companys credit risk from the analyses in a, b, and c? Explain.

4-26:

a) Compute the return on equity (ROE), the times interest earned ratio and the total-liabilities-to-equity ratio for 2010 for the companys two business segments and the company as a whole. (Use year-end equity for return on equity calculation).

b) What is your overall assessment of the companys credit risk? Explain. What differences do you observe between the two business segments? Do these differences correspond to your prior expectations given each companys business model?

c) Discuss the implications of the analysis of consolidated financial statements and the additional insight that can be gained from a more in-depth analysis of primary business segments.

2,384 22,012 21,820 Net cash flow from operating activities . Required a. Compute the current ratio for each year and discuss any trend in liquidity. What additional informa- tion about the numbers used to compute this ratio might be useful in helping you assess liquidity? Explain b. Compute times interest earned, total liabilities-to-equity, and net cash from operating activities to total liabilities ratios for each year and discuss any trends for each. Do you have any concerns about the extent of Verizon's financial leverage and the company's ability to meet interest obligations? Explain. Verizon's capital expenditures are expected to increase substantially as it seeks to respond to com petitive pressures to upgrade the quality of its communications infrastructure. Assess Verizon's liquidity and solvency in light of this strategic direction. c. EA-24 Compute and Interpret Coverage, Liquidity and Solvency Ratios (L03) Selected balance sheet and income statement information from CVS Caremark for 2 follows (S millions). CORPURATION (CvS) Total Current Assets Total Current Liabilities Total Pretax Income Interest ExpenseLiabilities Equity 2010. 2009. 2008. $17,706 17,537 16,526 $11,070 12,300 13,490 $5,629 5,913 5,537 $536 525 509 $24,469 25,873 26,386 $37,700 35,768 34,574 Required a. Compute times interest earned ratio for each year and discuss any trends for each. b. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the com- pany is sufficiently liquid? Explain. What additional information about the accounting numbers comprising this ratio might be useful in helping you assess liquidity? Explain Compute the total liabilities-to-equity ratio for each year and discuss any trends for each. What is your overall assessment of the company's credit risk from the analyses in (a). (b), and (c)? Explain c. d