Consider the following 2019 data for two manufacturing firms ($ in millions):
a. Compute the operating-cash-flow-to-current-liabilities ratio for each firm for 2019.
b. Compute the operating-cash-flow-to-capital-expenditures ratio for 2019.
c. Comment on the results of your computations.

Question

Consider the following 2019 data for two manufacturing firms ($ in millions):
  a. Compute the operating-cash-flow-to-current-liabilities ratio for each firm for 2019.
b. Compute the operating-cash-flow-to-capital-expenditures ratio for 2019.
c. Comment on the results of your computations.

Quizplus · Accepted Answer

The Answer of Consider the following 2019 data for two manufacturing firms ($ in millions):
  a. Compute the operating-cash-flow-to-current-liabilities ratio for each firm for 2019.
b. Compute the operating-cash-flow-to-capital-expenditures ratio for 2019.
c. Comment on the results of your computations.

Consider the Following 2019 Data for Two Manufacturing Firms