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Use the following information to answer the questions that follow.... The Big Cheese Company 2019 2020 Interest Expense Cash Property, Plant, and Equipment Inventories Payables
Use the following information to answer the questions that follow.... The Big Cheese Company 2019 2020 Interest Expense Cash Property, Plant, and Equipment Inventories Payables Gross Profit Bonds (LT Debt) Salaries Receivables Administrative Dividends Loans from Bank (ST) Investments (ST) Revenues Depreciation Sales and Distribution Investments (LT) 200 180 16000 1500 1750 4000 1500 1600 200 400 200 0 1100 6000 800 400 6000 1950 30 39550 150 5600 9200 9000 3230 50 380 0 3000 0 13300 2000 850 0 All values given are in 1000s of dollars. Asset values are net of depreciation. 6. What was the change in Big Cheese's Times Interest Earned? What caused the change? 7. Compute the current ratio and the cash ratio for Big Cheese for both years. How are things looking for The Cheese over the next 12 months? 8. Ceteris paribus, if The Cheese issues more long-term debt (bonds) now, which will result in a large increase in interest expense in the upcoming year, what will happen to the Return on Capital ratio over the upcoming year
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