questions 1-5

Question 1: Calculate the firm's 2018 Cash Flows from Assets, showing the work behind all calculations. Question 2: You have been asked to provide a Common Size Income Statement for Spires in 2018. What is the correct figure for Interest Expense? Show your work, including the lines where you find your numbers. (Round to one decimal place.) Question 3: (a) What is Spires's 2018 Current Ratio? Show your work, including the lines where you find your numbers. (Round to one decimal place.) (b) Its competitor, FirmB has a Current Ratio of 1.1. If all else is equal, which is the better-managed company? (Explain why in one sentence.) Question 4: Suppose a firm you are invested in has a Times Interest Earned ratio of 1.6. As an investor, how do you feel about the quality of that firm? (Two sentences maximum.) Question 5: Suppose a firm has the following Turnover Ratios: Receivables Turnover Ratio: 4.2 Inventory Turnover Ratio: 3.6 Payables Turnover: 4.0 What is the length of the firm's Cash Cycle? (Round to the nearest day.) (Show work.) 2018 2017 2018 2017 6,411 1,121 Spires, Inc Year End 2018 Balance Sheet Assets Cash Accounts Receivable Inventory Net Fixed Assets Total Assets 1,264 383 4,659 1,752 6,037 4,467 1570 429 297 71 210 601 4,745 6993 Income Statement Sales COGS Gross Income SG&A Depreciation EBIT Interest EBT Taxes 4,190 373 409 6037 1,308 951 168 195 Liabilities 756 1,140 227 152 Current Liabilities Long-Term Debt Total Liabilities 1,791 3,318 5,109 1,250 3,474 4,724 Net Income 913 604 Total Owners' Equity 1,884 1,313 Total Liabilities and OE 6,993 6,037