Presented below are summary financial data from porter’s annual report: amounts in millions balance sheet cash and cash equivalents $1,850 marketable securities 19,100 accounts receivable (net) 9,367 total current assets 39,088 total assets 123,078 current liabilities 38,450 long-term debt 7,279 shareholders’ equity 68,278 income statement interest expense 400 net income before taxes 14,007

calculate the following ratios: (round to 2 decimal points)
a. times-interest-earned ratio
b. quick ratio answer
c. current ratio

(a) 36.02 times

(b) 0.7884

(c) 1.02

Explanation:

(a) Times interest earned ratio:

= (Net income before taxes + interest expense) ÷ interest expense

= (14,007 + 400) ÷ 400

= 36.02 times

(b) Quick ratio:

= (cash and cash equivalents + marketable securities + accounts receivable) ÷ current liabilities

= (1,850 + 19,100 + 9,367) ÷ 38,450

= 0.7884

(c) Current ratio = current assets ÷ current liabilities

                          = 39,088 ÷ 38,450

                          = 1.02

drop shippers;

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability