Question

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.

Answer 1

Answer:

(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%