1. Use the following selected financial information for Wilcox Corporation to answer questions 11-20.

   Wilcox Corporation

   Income Statement

   For the Year Ended December 31, 20XX

   Net sales $2,870

   Cost of goods sold 1,985

   Gross profit $ 885

   Operating expenses 620

   Operating profit $ 265

   Interest expense 40

   Earnings before taxes $ 225

   Income tax expense 80

   Net profit $ 145

   Wilcox Corporation

   Balance Sheet

   December 31, 20XX

   Assets Liabilities and stockholders' equity

   Current assets Current liabilities

   Cash $ 25 Accounts payable $ 85

   Short-term investments 15 Accrued liabilities 45

   Accounts receivable 70 Total current liabilities 130

   Inventory 150 Long-term debt 240

   Total current assets 260 Total liabilities 370

   Long-term assets Stockholders' equity

   Net PPE 390 Common stock and PIC 80

   Goodwill 210 Retained earnings 410

   Total stockholders' equity 490

   Total assets $860 Total liabilities and equity $860

   WilcoxCorporation

   Statement of Cash Flow Information

   For the Year Ended December 31, 20XX

   Cash from operating activities $150

   Investing activities:

   Capital expenditures $ 60

   Acquisitions $ 10

   Financing activities:

   Proceeds from long-term borrowing $ 50

   Payments on long-term borrowing $ 25

   Payments of cash dividends $ 20

   Cash paid for interest $ 10

   Cash paid for income taxes $ 75

   Wilcoxs cash flow adequacy ratio is:

   	a.	1.43
   	b.	2.15
   	c.	1.90
   	d.	0.54