data tables attached with questionthanks for helpappreicated it4ijt41jti4j4y4y4 Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Review the following financialstatements.(Click the icon to view the financial statements.)Read the requirement.Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the currstatement. Round the ratios to two decimal places.)Requirement1. Compare three fictitious companies (Adamson, Malcomb, and Raffler) bycalculating the following ratios: current ratio, debt ratio, leverage ratio,and times-interest-earned ratio. Use year-end figures in place of averageswhere needed for calculating the ratios in this exercise. Based on yourcomputed ratio values, which company looks the least risky?PrintDoneXCurrData table(Amounts in millions or billions)Income dataTotal revenuesOperating incomeInterest expenseNet incomeAsset and liability data(Amounts in millions or billions)Total current assetsLong-term assetsTotal current liabilitiesLong-term liabilitiesCommon stockholders' equityPrintAdamson$ 9,726295452242812023767244DoneMalcomb€ 7,90922634134,9211,5362,2472,2731,937Raffler€136,2995,649719450129,22889,30472,600110,96734,965X Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Review the following financialstatements.(Click the icon to view the financial statements.)Read the requirement.Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Adamson, Malcomb, and Raffler. (Enter amounts in millions or billions as provided to you in the problemstatement. Round the ratios to two decimal places.)Total current assetsAdamson428+Total current liabilities = Current ratio237=

Ratio analysis is the analysis of elements of the financial statements of the entity for a period in…

1. Compare three fictitious companies (Adamson, Malcomb, and Raffler) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Based on your computed ratio values, which company looks the least risky?

1. Compare three fictitious companies (Adamson, Malcomb, and Raffler) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Based on your computed ratio values, which company looks the least risky?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 91PSB: Comparing Financial Ratios Presented below are selected ratios for four firms. Tweeter is a...

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