Question
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
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Essentials Of Federal Taxation 2018
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
9th Edition
9781260007640
