Selected Data Taken from the 2014 Financial Statements of Phillips

question 87

Essay

Selected data taken from the 2014 financial statements of Phillips Card Company, Inc. are as follows (in millions). $$\begin{array} { l r } \text { Net sales } & \$ 295.9 \\\text { Current liabilities, February 28, } 2013 & 39.5 \\\text { Current liabilities, February 28, 2014 } & 47.5 \\\text { Net cash provided by operating activities } & 17.0 \\\text { Total liabilities, February 28, 2013 } & 64.2 \\\text { Total liabilities, February 28, } 2014 & 71.2 \\\text { Capital expenditures } & 2.6 \\\text { Cash dividends } & 6.5\end{array}$$ Instructions
Compute these ratios at February 20, 2014:
(a) Current cash debt coverage
(b) Cash debt coverage
(c) Free cash flow
Provide a brief interpretation of your results.

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Definitions:

Improvements

Refers to enhancements or betterments in situations, processes, or qualities.

Deficits

The shortfall or deficiency in a particular area such as budget, skill, or knowledge.

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Womb Experiences

The conditions and stimuli an individual is exposed to while in the mother's uterus, which can influence development and health.