The following information was obtained from the comparative financial statements included in Arco Inc.'s 2016
annual report. All amounts are in millions of dollars.

1. Using the information provided, compute the following for 2016 and 2015:
a. Debt-to-equity ratio at each year-end
b. Times interest earned ratio
c. Debt service coverage ratio
d. Cash flow from operations to capital expenditures ratio
2. Comment briefly on the company's solvency.

Question

The following information was obtained from the comparative financial statements included in Arco Inc.'s 2016
annual report. All amounts are in millions of dollars.
   
1. Using the information provided, compute the following for 2016 and 2015:
a. Debt-to-equity ratio at each year-end
b. Times interest earned ratio
c. Debt service coverage ratio
d. Cash flow from operations to capital expenditures ratio
2. Comment briefly on the company's solvency.

Quizplus · Accepted Answer

The Answer of The following information was obtained from the comparative financial statements included in Arco Inc.'s 2016
annual report. All amounts are in millions of dollars.
   
1. Using the information provided, compute the following for 2016 and 2015:
a. Debt-to-equity ratio at each year-end
b. Times interest earned ratio
c. Debt service coverage ratio
d. Cash flow from operations to capital expenditures ratio
2. Comment briefly on the company's solvency.

The Following Information Was Obtained from the Comparative Financial Statements