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6 August, 22:54

Suppose the 2017 adidas financial statements contain the following selected data (in millions).

Current assets $4,570

Interest expense $160

Total assets 8,320

Income taxes 120

Current liabilities 3,060

Net income 260

Total liabilities 4,544

Cash 750

Compute the following values. (a) Working capital. $millions (b) Current ratio. (Round to 2 decimal places, e. g. 6.25:1.) : 1 (c) Debt to assets ratio. (Round to 0 decimal places, e. g. 62%.) % (d) Times interest earned.

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  1. 7 August, 01:44
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    (A) net working capital = 1,510

    (B) current ratio = 1.49

    (C) debt to assets = 54.6153%

    Explanation:

    working capital

    current assets - current liabilities

    4,570 - 3,060 = 1,510

    current ratio

    current assets / current liab

    4570/3060 = 1.493464052

    (c) debt to assets

    total liab / total assets

    4,544/8,320 = 54.6153%
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