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QUESTION 2 Selected 2021 balance sheet and income statement information for two manufacturing companies, Mammoth, Inc. and Glacier Corporation, follows: Mammoth (in $ millions) Glacier
QUESTION 2 Selected 2021 balance sheet and income statement information for two manufacturing companies, Mammoth, Inc. and Glacier Corporation, follows: Mammoth (in $ millions) Glacier (in $ millions) Cash Marketable securities Accounts receivable All other current assets Total current liabilities Total liabilities Total equity Pre-tax income $ 30,000 500 35,000 50,000 65,000 236,000 75,000 3,900 1,800 $ 3,600 100 6,500 8,500 25,000 15,100 22,000 6,200 100 Interest expense A. Calculate the current ratio for Mammoth (to two decimals). B. Calculate the current ratio for Glacier (to two decimals). C. Calculate the quick ratio for Mammoth (to two decimals). D. Calculate the quick ratio for Glacier (to two decimals) E. Which company is more liquid? F. Calculate the times interest earned for Mammoth (to two decimals). G. Calculate the times interest earned for Glacier (to two decimals). H. Calculate the debt-to-equity ratio for Mammoth (to two decimals)
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