(dollar amounts in millions)Consolidated Financial Measures and RatiosOperating ResultsNet earningsPer common shareOperating incomeOperating marginGross profit percentageReturn on net assetsReturn on shareholders' equityInterest coverageFinancial PositionBlack CorporationYears Ended December 312020Working capitalCurrent assetsCurrent liabilities$$$$$$7692.731,3124.4 %22.2 %12 %13.2 %4.2 times1,7446,4624,718GAGA2019GA6752.431,2391,0616,092$ 5,0314.4 %22.4 %12%12.6%4.2 times2018656$ 2.39$1,2053.9%23.4 %12 %10.9 %4.2 times$972$ 5,995$ 5,023 Examine the financial data of Black Corporation. Show how to compute Black's current ratio from 2018 to 2020. Is the company's ability to pay itscurrent liabilities improving or deteriorating?(Click the icon to view the balance sheet.)(Round ratios to two decimal places.)Formula:201820192020Black's ability to pay its current liabilities isII11Current ratio

Current ratio tell us the ability of a company to repay current liabilities on time. Current ratio…

Black Corporation Years Ended December 31 2020 (dollar amounts in millions) Consolidated Financial Measures and Ratios Operating Results Net earnings Per common share Operating income Operating margin Gross profit percentage Return on net assets Return on shareholders' equity Interest coverage Financial Position Working capital Current assets Current liabilities $ $ $ $ $ $ 769 2.73 1,312 4.4% 22.2 % 12% 13.2 % 4.2 times 1,744 6,462 4,718 $ $ $ $ $ $ 2019 675 2.43 1,239 4.4% 22.4% 12% 12.6% 4.2 times 1,061 6,092 5,031 $ $ $ $ $ LA 2018 656 2.39 1,205 3.9 % 23.4% 12 % 10.9 % 4.2 times 972 5,995 5,023

Black Corporation Years Ended December 31 2020 (dollar amounts in millions) Consolidated Financial Measures and Ratios Operating Results Net earnings Per common share Operating income Operating margin Gross profit percentage Return on net assets Return on shareholders' equity Interest coverage Financial Position Working capital Current assets Current liabilities $ $ $ $ $ $ 769 2.73 1,312 4.4% 22.2 % 12% 13.2 % 4.2 times 1,744 6,462 4,718 $ $ $ $ $ $ 2019 675 2.43 1,239 4.4% 22.4% 12% 12.6% 4.2 times 1,061 6,092 5,031 $ $ $ $ $ LA 2018 656 2.39 1,205 3.9 % 23.4% 12 % 10.9 % 4.2 times 972 5,995 5,023

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2MC

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