BriefExercise 10-18 Suppose the 2019 adidas financial statements contain the fol

Question

BriefExercise 10-18 Suppose the 2019 adidas financial statements contain the following selected data (in millions). Current assets Total assets Current liabilities Total liabilities Cash $4,485Interest expense 8,875 Income taxes 2,836 Net income 5,099 $169 113 245 775 Compute the following values. (a) Working capital. (b) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) (c) Debt to assets ratio. (Round to 0 decimal places, e.g. 6296) (d) Times interest earned. (Round to 2 decimal places, e.g. 6.25.) millions times

Explanation / Answer

a Working capital = 4485-2836= 1649 b Current ratio = 4485/2836= 1.58 c Debt to assets ratio = 5099/8875= 57% d Times interest earned = (245+113+169)/169= 3.12

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