The following information was obtained from the comparative financial statements included in Arco Inc.'s 2016
annual report. All amounts are in millions of dollars.
1. Using the information provided, compute the following for 2016 and 2015:
a. Debt-to-equity ratio at each year-end
b. Times interest earned ratio
c. Debt service coverage ratio
d. Cash flow from operations to capital expenditures ratio
2. Comment briefly on the company's solvency.
Definitions:
Parallel Evolution
Refers to independent evolution of similar traits, starting from a similar ancestral condition.
Placental Mammals
Mammals that give birth to live, fully developed young that have been nourished in the womb via a placenta.
Marsupial Mammals
A group of mammals characterized by giving birth to relatively undeveloped offspring which typically continue to develop in a pouch on the mother's body.
Uterus
The reproductive organ in female mammals where fertilized eggs implant and develop into a fetus.
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