Compute and Interpret Liquidity, Solvency and Coverage
Ratios
Selected balance sheet and income statement information from
Verizon Communications follows.
| ($ millions) | 2005 | 2004 |
|---|---|---|
| Current assets | $ 16,448 | $ 19,479 |
| Current liabilities | 25,063 | 23,129 |
| Total debt | 39,010 | 39,267 |
| Total liabilities | 101,696 | 103,345 |
| Equity | 66,434 | 62,613 |
| Earnings before interest and taxes | 12,787 | 12,496 |
| Interest expense | 2,180 | 2,384 |
| Net cash flow from operating activities | $ 22,012 | $ 21,820 |
(a) Compute the current ratio for each year and discuss any
trend in liquidity. (Round your answers to two decimal
places.)
2005 current ratio = Answer
2004 current ratio = Answer
What additional information about the numbers used to compute this
ratio might be useful in helping you assess liquidity? (Select all
that apply)
Answeryesno The maturity schedule of current liabilities
Answeryesno The average stock price for the industry
Answeryesno The average current ratio for the industry
Answeryesno The amount of current assets that is concentrated in
relatively illiquid inventories
(b) Compute times interest earned, total liabilities-to-equity, and
net cash from operating activities to total debt ratios for each
year. (Round your answers to two decimal places.)
2005 times interest earned = Answer
2004 times interest earned = Answer
2005 total liabilities-to-equity = Answer
2004 total liabilities-to-equity = Answer
2005 net operating cash flow to total debt = Answer
2004 net operating cash flow to total debt = Answer
Which of the following best describes the extent of Verizon's
financial leverage and the company's ability to meet interest
obligations?
Verizon's times interest earned ratio has decreased, total liabilities-to-equity has increased, and net operating cash flow to total debt ratio has remained the same, which suggests the company will meet its obligations.
Verizon's times interest earned ratio has increased, total liabilities-to-equity has increased, and net operating cash flow to total debt ratio has decreased, which suggests the company will not meet its obligations.
Verizon's times interest earned ratio has increased, total liabilities-to-equity has decreased, and net operating cash flow to total debt ratio has remained the same, which suggests the company will meet its obligations.
Verizon's times interest earned ratio has increased, total liabilities-to-equity has decreased, and net operating cash flow to total debt ratio has decreased, which suggests the company will not meet its obligations.
(c)Verizon's capital expenditures are expected to increase
substantially as it seeks to respond to competitive pressures to
upgrade the quality of its communications infrastructure. Which of
the following best describes Verizon's liquidity and solvency in
light of this strategic direction?
The company's profitability and operating cash flow are fairly strong, both are particularly high in relation to the company's liabilities and interest costs. The capital expenditures can be made with no borrowing or additional equity.
The company's profitability and operating cash flow are fairly weak, both are very low in relation to the company's liabilities and interest costs. The company is on the verge of bankruptcy.
The company's profitability and operating cash flow are fairly weak, both are very low in relation to the company's liabilities and interest costs. The company cannot fund any capital expenditures.
The company's profitability and operating cash flow are fairly strong, neither is particularly high in relation to the company's liabilities and interest costs. The capital expenditures may have to be funded with higher-cost equity.
In: Accounting
Whitehill Publishing, a publisher of academic textbooks, has made an offer to acquire Yellowtape, a publisher of children’s books. The management teams at both companies have tentatively agreed upon a transaction value of Rs 56 per share for Yellowtape but are presently negotiating alternative methods of payment. Data used for the analysis of the transaction is given below
|
Whitehill Publishing |
Yellowtape |
|
|
Pre-merger Stock Price |
Rs 80 |
Rs 48 |
|
Number of shares outstanding (millions) |
30 |
20 |
|
Pre-merger market value (millions) |
Rs 2,400 |
Rs 960 |
Once the merger is completed, Mr. Bhatia, the CEO of Whitehill Publishing, plans for Whitehall to take on all of Yellotape’s assets and liabilities and the combined company will continue to operate under the Whitehill Publishing name. Mr. Bhatia estimates that cost reduction synergies as a result of the merger will total approximately Rs 180 million.
(1 mark)
In: Finance
The grades are below:
|
Subjects |
Pre-intervention |
Post-intervention |
|
1 |
5 |
6 |
|
2 |
7 |
7 |
|
3 |
9 |
12 |
|
4 |
5 |
5 |
|
5 |
9 |
10 |
|
6 |
7 |
8 |
|
7 |
8 |
13 |
|
8 |
4 |
5 |
Be sure to include the following parts:
In: Statistics and Probability
It is thought that communication mode influences academic, speech, language, and auditory outcomes. To investigate differences in speech production, (GF-Post), the participants were divided into three groups: (1) Those with CIs using listening and spoken language, (2) Those with CIs using total communication, and (3) Those without CIs using total communication.
A) What inferential test should the researchers use to test for differences in speech production at the end of the study?
B)Name the independent and dependent variables and their scales of measurement. Include justification.
Below are summary statistics. Complete the table, parts B and D of the ABCD process, conclude the analysis, and draw warranted conclusions.
|
GF-Post Means for Communication Groups |
||||
|
Group 1 (CI, LSL) |
Group 2 (CI, TC) |
Group 3 (No CI, TC) |
||
|
Mean |
89.8 |
76.4 |
67.8 |
|
|
N |
11 |
5 |
16 |
|
|
ANOVA Summary Table |
||||
|
Source |
df |
MS |
F |
|
|
Between/Groups |
27.8 |
Fcrit |
||
|
Within/Error |
8.12 |
Fobt |
||
C)Do the results require the use of post-hoc tests? Why or why not?
If the results of the analysis of variance require the use of post-hoc tests, employ Fisher’s LSD to determine which groups differ
In: Statistics and Probability
|
Participant |
Intelligence Score |
Motivation Score |
|
1 |
61 |
100 |
|
2 |
56 |
90 |
|
3 |
56 |
117 |
|
4 |
29 |
66 |
|
5 |
43 |
100 |
|
6 |
41 |
92 |
|
7 |
45 |
86 |
|
8 |
31 |
78 |
|
Mean |
45.25 |
91.13 |
|
S.D. |
11.77 |
15.39 |
In: Statistics and Probability
The Assignment:
Using the ‘Week 4 | Part 4’ section of your Academic Success and Professional Development Plan Template presented in the Resources, conduct an analysis of the elements of the research article you identified. Be sure to include the following:
Clearly identify the topic of interest you have selected.
Provide an accurate and complete APA formatted citation of the article you selected, along with link or search details.
Clearly identify and describe in detail a professional practice use of the theories/concepts presented in the article.
Provide a clear and accurate analysis of the article using the Research Analysis Matrix section of the template.
Write a 1-paragraph justification that clearly and accurately explains in detail whether you would recommend the use of this article to inform professional practice. Note: You can use the CARP method as presented in the Resources for this week on evaluating resources.
Write a 2- to 3-paragraph summary that you will add to your Academic Success and Professional Development Plan that includes the following:
Clearly and accurately describe in detail your approach to identifying and analyzing peer-reviewed research.
Clearly identify and accurately describe in detail at least two strategies that you would use that you found to be effective in finding peer-reviewed research.
Provide a complete, detailed, and specific synthesis of at least one resource you intend to use in the future to find peer-reviewed research.
Integrate at least one outside resource and 2-3 course specific resources to fully support your summary.
In: Nursing
1. Use PubMed or another abstract database to find an academic journal article on a health topic of interest to you. Read the article to find the answers to these questions: (a) What was the main study question? (b) Who participated in the study, where did it take place, and when was it conducted? (c) What study design was used? and (d) What was the answer to the main study question?
2. Find a recent news story from the popular press about a newly released health research report. Look up and read the scientific article on which the news report was based. Was the news story accurate? Did it leave out any critical information?
3. Do you identify with a particular ethnic group? Do you know of any health conditions that you are at special risk for because of your ethnic background? Are these conditions genetic? Are they related to health behaviors?
4. What are some of the conditions related to poverty that increase the risk of infectious diseases? Noncommunicable disease? Neuropsychiatric disorders? Injuries?
In: Nursing
1. Use PubMed or another abstract database to find an academic journal article on a health topic of interest to you. Read the article to find the answers to these questions:
(a) What was the main study question?
(b) Who participated in the study, where did it take place, and when was it conducted?
(c) What study design was used?
(d) What was the answer to the main study question?
2. Find a recent news story from the popular press about a newly released health research report. Look up and read the scientific article on which the news report was based. Was the news story accurate? Did it leave out any critical information?
3. Do you identify with a particular ethnic group? Do you know of any health conditions that you are at special risk for because of your ethnic background? Are these conditions genetic? Are they related to health behaviors?
4. What are some of the conditions related to poverty that increase the risk of infectious diseases? Noncommunicable disease? Neuropsychiatric disorders? Injuries?
In: Nursing
1. Use PubMed or another abstract database to find an academic journal article on a health topic of interest to you. Read the article to find the answers to these questions:
(a) What was the main study question?
(b) Who participated in the study, where did it take place, and when was it conducted?
(c) What study design was used?
(d) What was the answer to the main study question?
2. Find a recent news story from the popular press about a newly released health research report. Look up and read the scientific article on which the news report was based. Was the news story accurate? Did it leave out any critical information?
3. Do you identify with a particular ethnic group? Do you know of any health conditions that you are at special risk for because of your ethnic background? Are these conditions genetic? Are they related to health behaviors?
4. What are some of the conditions related to poverty that increase the risk of infectious diseases? Noncommunicable disease? Neuropsychiatric disorders? Injuries?
In: Nursing
You are asked to investigate the impact of diabetes on elementary school students’ academic performance. You decide to test whether the mean standardized test performance of students with diabetes is worse than the test performance of the school as a whole. The school has 235 students and the average test score for the school is set at 100 and has a standard deviation of 25. You are given data from 10 diabetic students who have an average score of 80. Please use a significance of 0.01.
a. Identify the assumed sample distribution, the formula for the test statistic, the significance level, the test distribution, and the null & alternative hypotheses
b. Calculate and report the test statistic, the input values for the test statistic, and the p value that results from the test. Also calculate the statistical power.
c. Decide whether you will reject or fail to reject the null hypothesis. Interpret that decision in the context of the problem. Evaluate the statistical power.
In: Statistics and Probability