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Selected balance sheet and income statement information from Tolefonica, Inc. foliows in the table below. Refer to this information to answer the requirements. (Amounts in

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Selected balance sheet and income statement information from Tolefonica, Inc. foliows in the table below. Refer to this information to answer the requirements. (Amounts in milions) For the fiscal year ended 2021 2020 Current assets $ 21,235 $ 30,939 Current liabilities 25.956 30,761 Total liabilities 139,689 144,553 Equity 85,533 85,908 Earnings before interest and taxes 12,468 13,310 Interest expense 2,571 2,827 Net cash flow from operating activities 31.486 29,780 Required a) Compute the company's current ratio for each year and discuss any trend in liquidity. What additional information about the numbers used to calculate this ratio might be useful in helping us assess liquidity? Explain Current ratio: Current year Prior year Comment: tren The Wan Rabilities Required a): Compute the company's current ratio for each year and discuss any trend in liquidity. What additional information about the numbers used to calculate this ratio might be useful in helping us assess liquidity? Explain Current ratio: Current year: Prior year: Comment: Required b) Compute the company's times interest earned and liabilities-to-equity ratio for current year and prior year. Comment on any observed trend. (The average liabilities. to-equity ratio for the telecommunications industry is 1.7.) Do you have any concerns about Telefonica's financial leverage and the company's ability to meet interest obligations? Explain Times interest earned Current year Prior year Comment Liabilities-to-equity Current year: Prior year Comment Required e). Telefonica's capital expenditures are expected to increase substantially as it seeks to respond to competitive pressures to upgrade the quality of its communication infrastructure. Assess Telefonica's liquidity and solvency in light of this strategic direction

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