The Following Information Was Available from the Financial Statements of Collateral

question 22

Essay

The following information was available from the financial statements of Collateral, Inc. for the years 2016 and 2015 (in millions of dollars): Required:
A.Calculate the capital acquisitions ratio for each of the two years.Round your answers to two decimal places.
B.Calculate the free cash flow for each of the two years.
C.Comment on the sufficiency of the capital acquisitions ratio and free cash flow for the two years and implications for future corporate strategy.

---

Definitions:

Flexible Work Hours

A work schedule that allows employees to vary their arrival and departure times, and sometimes the location from which they work.

Time Flexibility

The ability to adjust schedules, deadlines, or timelines to accommodate changes in demand, supply, or operational requirements, enhancing responsiveness and efficiency.

Manufacturing Capacity

The maximum output or production ability of a manufacturing facility, considering constraints like physical space, machinery, and labor hours available.

Inventory Costs

Expenses associated with holding or managing goods in stock, including storage, handling, and depreciation.