Selected balance sheet and income statement ($millions) ...
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Accounting
Selected balance sheet and income statement
($millions)
2013
2012
2011
Net sales
$3,794
$3,643
$3,085
Interest expense
59
49
54
Pretax income
644
665
547
Net income
416
439
368
Current assets
3,152
2,890
2,685
Total assets
4,631
4,159
3,736
Current liabilities
587
627
480
Required
Compute the current ratio for each year and discuss any trends. Do you feel that the company is sufficiently liquid? Explain. What additional information might be helpful in analyzing the liquidity?
Compute times interest earned for each year and discuss any trends. Do you have any concerns about its level of financial leverage and its ability to meet interest obligations? Explain.
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