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The financial statements of Metro Corporation follow Click the loon to view the asset section of the balance sheet) (Click the icon to view the

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The financial statements of Metro Corporation follow Click the loon to view the asset section of the balance sheet) (Click the icon to view the list and stockholders' equily sections of the balance sheet (Click the icon to view the income statement) 1. Calculate the company's debt ratio at December 31, 2018 2. Calculate the company's times interest-earned ratio for 2018 For operating income, use income from operations 3. Is Metro's ability to pay ablities and interest expense strong or weak? Comment on the value of each ratio calculated for questions 1 and 2 1. Calculate the company's det at December 31, 2018 Select the formula and then enter the amounts to calculate the debtotio (Enter currency amount in miomas en in the question Enter the debt ratio as a decimal to two places XXX Total Det ratio 2. Calculate the company's time teamed ratio for 2018 For operating income, use income from operations (Enter currency amount in milions as given in the question Round your answer to one decimal place, XX) Times-interest-earned ratio 3. Is Metro's ability to pay labies and interest expense strong or weak? Comment on the value of each ratio calculated for questions 1 and 2 The mos Thesest samedi Overal the company's ability to pay its abilities and interest expense looks Choose from any to enter any number and then 20 of 31 (13 complete) - X Data Table 18 018. F w of the mockl fong or Increase (Decrease) Amount Percentage 2018 2017 ent) (Dollar amounts in millions) Assets er 31 $ 1,210 $ 980 $ tes. X cald Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories 14 48 230 (34) (38) 23.5 % (70.8) (142) 45.7 ets 230 268 102 70 32 found ratid 292 302 (10) (3.3) Prepaid expenses and other assets 1,848 1.668 180 10.8 Total current assets 3,386 274 8.1 Property, plant, and equipment, net Intangible assets 3,660 1,020 826 848 172 20.3 expert 730 96 13.2 Other assets ned rat S 7,354 $ 6,632 5 722 Total assets 10.9 % the ind Print Done Metro Corporation Balance Sheet (Adpated) December 31, 2018 and 2017 Increase (Decrease) Amount Percentage 2018 2017 (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable Short-term debt A 966 S 860 $ 106 42 66 (24) 12.3 % (36.4) 10.3 116 128 66 12 (2) Other 68 (2.9) - 1,202 1.110 92 8.3 Total current liabilities Long-term debt Other liabilities 22.8 3,648 1.128 2.970 1.096 678 32 2.9 Print Done $ 966 $ 860 $ 106 Accounts payable Income tax payable Short-term debt 42 66 12.3% (36.4) 10.3 128 (24) 12 (2) 116 68 Other 66 (2.9) Total current liabilities 1,110 92 8.3 Long-term debt 1,202 3.648 1,128 22.8 2,970 1,096 678 32 Other liabilities 2.9 Total liabilities 5,978 5.176 802 15.5 2 2 (6.5) Stockholders' equity: Common stock Retained earnings Accumulated other comprehensive (loss) Total stockholders' equity Total liabilities and stockholders' equity 1,534 (160) 1.376 1.640 (186) 1,456 (106) 26 14.0 (80) (5.5) $ 7.354 $ 6,632 $ 722 10.9% Print Done i Data Table - X ce art res 2017 ima 9,319 4,851 Metro Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 Net revenues $ 9,500 $ Cost of goods sold 4,589 Gross profit 4,911 General and administrative expenses 3,607 Income from operations 1,304 204 Interest expense, net Income before income taxes 1.100 389 Provision for income taxes 711 $ Net income 4,468 3,456 the 1,012 178 834 251 $ 583 Print Done

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