Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet and income statement information from Comcast Corporation for 2015 and 2014 follows ($ millions). Total Current Assets Total Current Liabilities Income Before Interest and Taxes Interest Expense Total Liabilities* Stockholders' Equity 2015 $12,303 $18,178 $15,673 $2,702 $112,596 $53,978 2014 13,531 17,410 15,001 2,617 106,118 53,068 *Includes redeemable noncontrolling interests a. Compute the current ratio for each year. Round answers to two decimal places. Current Ratio 2015 2014 b. Compute times interest earned and the liabilities-to-equity ratio for each year. Round answers to two decimal places. Times interest Liabilities to earned equity 2015 2014
Answer | ||||||||
A | current ratio = total current assets / total current liabilities | |||||||
2015 | =12303/18178 | 0.68 | ||||||
2014 | =13531/17410 | 0.78 | ||||||
B. 1) | times interest earned ratio = income before interest and taxes / interest expenses | |||||||
2015 | =15673/2702 | 5.80 | ||||||
2014 | =15001/2617 | 5.73 | ||||||
2) | liabilities to equity ratio = total liabilities / stock holders equity | |||||||
2015 | =112596/53978 | 2.09 | ||||||
2014 | =106118/53068 | 2.00 | ||||||
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