Compute Liquidity and Solvency Ratios for Competing Firms
Halliburton and Schlumberger compete in the oil field...
Compute Liquidity and Solvency Ratios for Competing Firms
Halliburton and Schlumberger compete in the oil field services
sector. Refer to the following 2018 financial data for the two
companies to answer the requirements. $ millions HAL SLB Cash and
equivalents $2,008 $1,433 Short-term investments - 1,344 Accounts
receivable 5,025 7,566 Current assets 11,151 15,731 Current
liabilities 4,610 12,947 Total liabilities 16,438 33,921 Total
equity 9,162 35,123 Earnings before interest and tax (EBIT) 2,368
2,928 Interest expense, gross 554 537 a....
Compute and Interpret Coverage, Liquidity and Solvency
Ratios
Selected balance sheet and income statement information from...
Compute and Interpret Coverage, Liquidity and Solvency
Ratios
Selected balance sheet and income statement information from CVS
Health Corp. for 2014 through 2016 follows ($ millions).
Total Current Assets
Total Current Liabilities
EBIT (Operating income)
Interest Expense, Gross
Total Liabilities
Equity
2016
$33,930
$26,250
$10,504
$1,058
$57,628
$39,722
2015
32,046
23,169
9,620
838
55,234
40,091
2014
28,871
19,027
8,965
600
36,224
40,851
a. Compute times interest earned ratio for each year and discuss
any trends for each. Round answers to...
Liquidity Analyses for McDonald’s and Wendy’s
The following information was summarized from the balance sheets
included...
Liquidity Analyses for McDonald’s and Wendy’s
The following information was summarized from the balance sheets
included in Form 10-K of McDonald’s Corporation at December 31,
2015, and The Wendy’s Company and Subsidiaries at January 3,
2016.
McDonald’s
Wendy’s
(in millions)
(in thousands)
Current Assets:
Cash and cash equivalents*
$ 2,112
$ 253,912
Accounts and notes receivable
1,221
69,690
Inventories
113
8,832
Prepaid expenses and other...
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive Solutions
Inc. are...
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive Solutions
Inc. are as follows. The market price of Automotive Solutions Inc.
common stock was $56 on December 31, 20Y8.
AUTOMOTIVE SOLUTIONS INC.
Comparative Income Statement
For the Years Ended December 31, 20Y8 and 20Y7
20Y8
20Y7
Sales
$4,234,000
$3,901,040
Cost of goods sold
(1,511,100)
(1,390,210)
Gross profit
$2,722,900
$2,510,830
Selling expenses
$(975,730)
$(1,167,160)
Administrative expenses
(831,180)
(685,480)
Total operating expenses
(1,806,910)
(1,852,640)
Operating income
$915,990
$658,190...
Markus Company’s common stock sold for $5.75 per share at the
end of this year. The...
Markus Company’s common stock sold for $5.75 per share at the
end of this year. The company paid a common stock dividend of $0.69
per share this year. It also provided the following data excerpts
from this year’s financial statements:
Ending
Balance
Beginning
Balance
Cash
$
51,000
$
46,000
Accounts receivable
$
98,000
$
70,000
Inventory
$
77,800
$
98,000
Current assets
$
226,800
$
214,000
Total assets
$
868,000
$
956,200
Current liabilities
$
90,000
$
96,000
Total liabilities...
Measures of liquidity, Solvency and Profitability
The comparative financial statements of Marshall Inc. are as
follows....
Measures of liquidity, Solvency and Profitability
The comparative financial statements of Marshall Inc. are as
follows. The market price of Marshall Inc. common stock was $ 51 on
December 31, 20Y2.
Marshall Inc.
Comparative Retained Earnings
Statement
For the Years Ended December 31, 20Y2 and
20Y1
20Y2
20Y1
Retained earnings, January 1
$ 3,647,550
$ 3,100,450
Net income
772,800
635,000
Total
$ 4,244,550
$ 3,735,450
Dividends
On preferred stock
$ 10,500
$ 10,500
On common stock
77,400
77,400
Total dividends...
Measures of liquidity, Solvency and Profitability
The comparative financial statements of Marshall Inc. are as
follows....
Measures of liquidity, Solvency and Profitability
The comparative financial statements of Marshall Inc. are as
follows. The market price of Marshall common stock was $ 59 on
December 31, 20Y2.
Marshall Inc.
Comparative Retained Earnings
Statement
For the Years Ended December 31, 20Y2 and
20Y1
20Y2
20Y1
Retained earnings, January 1
$ 1,569,900
$ 1,328,700
Net income
331,200
272,200
Total
$1,901,100
$ 1,600,900
Dividends:
On preferred stock
$ 11,200
$ 11,200
On common stock
19,800
19,800
Total dividends
$ 31,000...
Measures of liquidity, Solvency and Profitability The
comparative financial statements of Marshall Inc. are as follows....
Measures of liquidity, Solvency and Profitability The
comparative financial statements of Marshall Inc. are as follows.
The market price of Marshall common stock was $ 62 on December 31,
20Y2. Marshall Inc. Comparative Retained Earnings Statement For the
Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings,
January 1 $ 1,707,275 $ 1,444,725 Net income 358,800 295,900 Total
$2,066,075 $ 1,740,625 Dividends: On preferred stock $ 11,900 $
11,900 On common stock 21,450 21,450 Total dividends $ 33,350...