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 YearSelect Income Statement Information Net revenue$4,556 $4,320Cost of goods sold 2,643 2,533Selling, general, and administrative expenses 1,305 1,226Interest expense 76 74Income tax expense 235 190Net income 378 321Select Statement of Cash Flows Information Cash paid for interest 67 71Cash flows from operating activities 618 559Select Balance Sheet Information Cash and equivalents 517 360Marketable securities — 8Accounts receivable 512 511Inventories 255 246Prepaid expense and other current assets 30 27Accounts payable 160 123Current accrued expenses 387 350Current portion of long-term debt 3 12Other current liabilities 106 87Long-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. Answer is complete but not entirely correct.Receivable turnover ratio8.91Inventory turnover ratio10.55Current ratio2.00Cash ratioTimes interest earned ratio0.799.07Cash coverage ratio2.93 X Required:Compute the following ratios for the current year: (Round your answers to 2 decimal places.)X Answer is complete but not entirely correct.Receivable turnover ratio8.91Inventory turnover ratio10.55Current ratio2.00Cash ratio0.79Times interest earned ratio9.07Cash coverage ratio1.73 X

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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