Sharp Uniforms designs and manufactures uniforms for corporations throughout the United States and Canada. The company's stock is traded on the NASDAQ. Selected information from the company's financial statements follows. (assume that all sales were credit sales) SHARP (in millions) Current Year Prior Year Select Income Statement Information Net revenue $ 4,556 $ 4,320 Cost of goods sold 2,643 2,533 Selling, general, and administrative expenses 1,305 1,226 Interest expense 76 74 Income tax expense 235 190 Net income 378 321 Select Statement of Cash Flows Information Cash paid for interest 67 71 Cash flows from operating activities 618 559 Select Balance Sheet Information Cash and equivalents 517 360 Marketable securities — 8 Accounts receivable 512 511 Inventories 255 246 Prepaid expense and other current assets 30 27 Accounts payable 160 123 Current accrued expenses 387 350 Current portion of long-term debt 3 12 Other current liabilities 106 87 Long-term debt 1,310 1,305 Required: Compute the following ratios for the current year: (Round your answers to 2 decimal places.) Please help with cash coverage ratio.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 5MC

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Sharp Uniforms designs and manufactures uniforms for corporations throughout the United States and Canada. The company's stock is traded on the NASDAQ. Selected information from the company's financial statements follows. (assume that all sales were credit sales)

SHARP (in millions)
	Current Year		Prior Year
Select Income Statement Information
Net revenue	$	4,556		$	4,320
Cost of goods sold		2,643			2,533
Selling, general, and administrative expenses		1,305			1,226
Interest expense		76			74
Income tax expense		235			190
Net income		378			321
Select Statement of Cash Flows Information
Cash paid for interest		67			71
Cash flows from operating activities		618			559
Select Balance Sheet Information
Cash and equivalents		517			360
Marketable securities		—			8
Accounts receivable		512			511
Inventories		255			246
Prepaid expense and other current assets		30			27
Accounts payable		160			123
Current accrued expenses		387			350
Current portion of long-term debt		3			12
Other current liabilities		106			87
Long-term debt		1,310			1,305

Required:

Compute the following ratios for the current year: (Round your answers to 2 decimal places.)

Please help with cash coverage ratio.

X Answer is complete but not entirely correct.
Receivable turnover ratio
8.91
|Inventory turnover ratio
10.55
Current ratio
2.00
Cash ratio
0.79
Times interest earned ratio
9.07
Cash coverage ratio
1.73 X

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