An analyst observes the following data for two companies:

Company A

Company B

Revenue

$4,500

$6,000

Net income

$50

$1,000

Current assets

$40,000

$60,000

Total assets

$100,000

$700,000

Current liabilities

$10,000

$50,000

Total debt

$60,000

$150,000

shareholders equity

$30,000

$500,000

Which of the following choicesbestdescribes reasonable conclusions that the analyst might make about the two companies’ ability to pay their current and long-term obligations?

A. Company A’s current ratio of 4.0 indicates it is more liquid than Company B, whose current ratio is only 1.2, but Company B is more solvent, as indicated by its lower debt-to-equity ratio.

B. Company A’s current ratio of 0.25 indicates it is less liquid than Company B, whose current ratio is 0.83, and Company A is also less solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B’s debt-to-equity ratio of only 30 percent.

C. Company A’s current ratio of 4.0 indicates it is more liquid than Company B, whose current ratio is only 1.2, and Company A is also more solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B’s debt-to-equity ratio of only 30 percent.

The following information relates to Questions 12 through 15.

The data in Exhibit A appear in the five-year summary of a major international company. A business combination with another major manufacturer took place in FY13.

FY10

FYI 1

FY12

FY13

FY14

Financial mcmcn ES

Income statements

GBP m

GBP m

GBP m

GBP in

GBP m

Revenue

4.390

3.624

3.717

8.167

11,366

Profit before interest and taxation (EDIT)

844

700

704

933

1.579

Net interest payable

—80

—54

—98

—163

—188

Taxation

—186

—195

—208

—349

—579

Minorities

—94

—99

—105

—125

—167

Profit for the year

484

352

293

2%

645

Balance sheets

Fixcd asses

3.510

3.667

4,758

10.431

11.483

Current asset investments. cash at bank and in hand

316

218

290

561

682

Other current assets

558

514

643

1,258

1,634

Total assets

4,384

4,399

5,691

12,250

13.799

!mesa bearing debt (long term)

—602

—1,053

—1,535

—3,523

—3,707

Other aeditors and provisions (current)

—1,223

—1,054

—1,102

—2,377

—3,108

Total liabilities

—1,825

—2,107

—2,637

—5,900

—6.815

Net assets

2,559

2,292

3.054

6.350

6.984

Shareholders fiends

2,161

2.006

2,309

5.572

6.165

Equity minority interests

398

2%

745

778

819

Capital employed

2,559

2,292

3,054

6,350

6,984

Cash flow

Working capital movements

—53

5

71

85

107

Net cash inflow from operating activities

864

859

975

1,568

2,292

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Benefits of our college essay writing service

  • 80+ disciplines

    Buy an essay in any subject you find difficult—we’ll have a specialist in it ready

  • 4-hour deadlines

    Ask for help with your most urgent short tasks—we can complete them in 4 hours!

  • Free revision

    Get your paper revised for free if it doesn’t meet your instructions.

  • 24/7 support

    Contact us anytime if you need help with your essay

  • Custom formatting

    APA, MLA, Chicago—we can use any formatting style you need.

  • Plagiarism check

    Get a paper that’s fully original and checked for plagiarism

What the numbers say?

  • 527
    writers active
  • 9.5 out of 10
    current average quality score
  • 98.40%
    of orders delivered on time
error: