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Johnston designs and manufactures uniforms for corporations throughout the United States and Canada. Selected information from the company's financial statements follows. (assume that all sales
Johnston designs and manufactures uniforms for corporations throughout the United States and Canada. Selected information from the company's financial statements follows. (assume that all sales were credit sales) JOHNSTON (in millions) Current Year Prior Year Select Income Statement Information Net revenue $4,590 $4,354 Cost of goods sold 2,694 2,567 Selling, general, and administrative expenses 1,322 1,260 Interest expense 110 108 Income tax expense 252 241 Net income 412 372 Select Statement of Cash Flows Information Cash paid for interest 84 88 Cash flows from operating activities 703 610 Select Balance Sheet Information Cash and equivalents 551 428 Marketable securities - 25 Accounts receivable 546 562 Inventories 289 297 Prepaid expense and other current assets 64 44 Accounts payable 245 140 Current accrued expenses 472 418 Current portion of long-term debt 20 46 Other current liabilities 140 104 Long-term debt 1,395 1,339 Required: Compute the following ratios for the current year: cash coverage ratio
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