These are the three long term solvency ratios for Facebook Inc. Based on these numbers, how well is the company doing? How are their levels of debt financing? Rounded to: MillionsCurrent Year:2018Prior Year:2017Debt ratio:Total Liabilities$13,207.0$10,177.0Total Assets$97,334.0$84,524.0$13,207.0$10,177.00.14 times0.12 times$97,334.0$84,524.0Debt to equity ratio:Total Liabilities$13,207.0$10,177.0Stockholders' Equity$84,127.0$74,347.0$13,207.0$10,177.00.16 times0.14 times%3D$84,127.0$74,347.0Interest coverage ratio*:Income Before IncomeTaxes + Interest Expense$3,249.0$448.0$4,660.0$391.0++Interest Expense$448.0$391.0* This ratio may also be referred to as$3,697.0$5,051.0the "Times-interest-earned" ratio or TIE8.25 times12.92 timesratio.$448.0$391.0

Solvency ratio can be defined as those financial ratios with the help of which it can be determined…

Answered: ased on these numbers, how well is the…

Business

Accounting

ased on these numbers, how well is the company doing? How are their levels of debt financing?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.10E

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Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019Current assets Cash and cash equivalents $3,200 $1,845Accounts receivable, net 3,450 3,180Inventories 2,639 3,042Other current assets 1,872 1,549Total current assets $11,161 $9,616Current liabilities $4,853 $5,893 (a)Calculate the current ratio and working capital for 3M for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 1.25 : 1. Enter working capital answers to million.) Current ratio 2019 :12020 :1 Working capital 2019 $ million2020 $ million (b)The parts of this question must be completed in order. This part will be available when you complete the part above.
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