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suppose the 2022 adidas financial statements contain the following selected data (in millions). current assets total assets current liabilities total liabilities cash $4,485 8,875 2,836 5,099 775 interest expense $169 income taxes net income 113 245 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 o decimal places, e.g. 62%.) (d) times interest earned. (round to 2 decimal places, e.g. 6.25.)

Respuesta :

anthougo

The computation of the following financial ratios is as follows:

a) Working capital = $1,640

b) Current ratio = 1.58:1

c) Debt to assets ratio = 57%

d) Times interest earned = 2.12 times.

What are financial ratios?

Financial ratios are accounting methods for comparing the magnitude of one financial statement element to another.

Financial ratios help in evaluating financial performance and comparing numerical relationships between components of an entity's financial statements and across companies and industries.

Addidas Financial Statements' selected data (in millions):

Current assets = $4,485

Total assets = $8,875

Current liabilities = $2,836

Total liabilities = $5,099

Cash = $775

Interest expense = $169

Income taxes = $113

Net income = $245

a) Working capital = Current assets - Current liabilities

= $1,640 ($4,485 - $2,836)

b) Current ratio = Current assets/Current liabilities

= 1.58:1 ($4,485/$2,836)

c) Debt to assets ratio = Total Debts/Total Assets

= 57% ($5,099/$8,875 x 100)

d) Times interest earned = Income before tax/Interest Expense

= 2.12 times ($358/$169)

Income before tax = Net income + Income tax

= $358 ($245 + $113)

Learn more about financial ratios at https://brainly.com/question/9091091

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