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Question 4 Partially correct Mark 0.19 out of 3.00 Flag question Compute Ratios from Statement of Cash Flow Information Use the following information, taken from
Question 4 Partially correct Mark 0.19 out of 3.00 Flag question Compute Ratios from Statement of Cash Flow Information Use the following information, taken from each of the company's 2018 financial statements to complete the requirements. Cash from Current Company Operations Liabilities CAPEX Arconic Inc. $217 $3,520 $768 Carmax Inc. 163 1,312 305 Flowserve Corp. 1,081 84 Fluor Corp. 162 3,553 211 191 a. Compute the operating cash flow to current liabilities ratio for each company. b. Rank-order each company from low to high liquidity (ability to pay liabilities as they come due). Do any of the companies have liquidity difficulties? C. Compute the operating cash flow to CAPEX ratio for each company. Compared with the rule of thumb of 1.0, assess each company's solvency as either low, medium, or high. d. Rank-order each company from low to high solvency, Do any of the companies have solvency difficulties? Round answers to two decimal places. For ranking, 1 is the highest and 4 is the lowest. Liquidity Rank Solvency Rank Company Arconic Inc Carmax Inc. Flowserve Corp. Fluor Corp. Operating Cash Flow to Current Liabilities 0.33 X 4 2.62 X 1 1.12 x 2 0.53 X 3 Operating Cash Flow to CAPEX 0.89 x 4 X 5.68 X 1 x 3.08 x 2 x 1.39 X 3 x * * *
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