Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Selected balance sheet and income statement information for Alexander Company from 2020 and 2019 are provided below. $ millions 2020 2019 Cash and equivalents 4,150
Selected balance sheet and income statement information for Alexander Company from 2020 and 2019 are provided below.
$ millions | 2020 | 2019 |
Cash and equivalents | 4,150 | 4,017 |
Short-term investments | - | - |
Accounts receivable | 9,334 | 8,633 |
Current assets | 16,825 | 15,889 |
Current liabilities | 17,660 | 19,595 |
Total liabilities | 45,766 | 50,785 |
Total equity | 52,832 | 45,004 |
Earnings before interest and tax (EBIT) | 14,804 | 13,775 |
Interest expense, gross | 682 | 507 |
- Compute the following measures for both years
- Current ratio
- Quick ratio
- Times interest earned
- Liabilities-to-equity
- In which year does the company appear more liquid? Why?
- In which year does the company appear more solvent? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started