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NEED ANSWER ASAP ZOOM IN PLEASE I CANT ZOOM IT MORE I e.) NCORRECT ANSWER PLEASE

ID: 2557325 • Letter: N

Question

NEED ANSWER ASAP

ZOOM IN PLEASE I CANT ZOOM IT MORE I

e.)

NCORRECT ANSWER PLEASE ANSWER CORRECT

PART 2

Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. ?(Click the icon to view the financial statements.) Requirement 1. Compare three leading companies on their current rati y T. Based on your computed ratio values, whic company looks the least risky? Data Table Begin by computing the ratios. Start by selecting the formul aces (Amounts in millions or billions) Income data Total revenues Operating income Interest expense Net income Asset and liability data (Amounts in millions or billions) Total current assets Long-term assets Total current liabilities Long-term liabilities Stockholders' equity Company B Company Company T 9,725 294 43 21 7,309 224 31 12 136,130 5,630 687 448 430 160 227 5,143 1,199 2,217 2,286 1,839 138,960 89,386 72,000 110,677 45,669 Choose from any drop-down list and then click Check Pamsinin javascript:doExercise(5) Check Answer 286

Explanation / Answer

Company G Company J Company T Total Revenues 9725 7309 36130 Operating Income 294 224 5630 Interest Expense 43 31 687 Net Income 21 12 448 Total CA 430 5143 138960 Long Term Assets 160 1199 89386 Total Assets 590 6342 228346 Total CL 227 2217 72000 Long Term Liabilities 77 2286 110677 Stockholder;s Equity 286 1839 45669 590 6342 228346 Current Ratio=Current Asset/Current Liabilities Total CA Total CL CR Company G 430 227 1.89 Company J 5143 2217 2.32 Company T 138960 72000 1.93 Debt Ratio=Total Debt excl CL/Total Assets Total Debt Total Assets DR Company G 77 590 0.13 Company J 2286 6342 0.36 Company T 110677 228346 0.48 Leverage Ratio=Total Debt/Total Equity Total Debt Total Equity LR Company G 77 286 0.27 Company J 2286 1839 1.24 Company T 110677 45669 2.42 Times Interest Earned Ratio=EBIT/Interest Exp EBIT Interest Ex TIER Company G 294 43 6.84 Company J 224 31 7.23 Company T 5630 687 8.20 Company G