Question: Buffalo Bell’s quick (acid-test) ratio
Buffalo Bell’s quick (acid-test) ratio at year-end 2012 is closest to
a. 0.75.
b. $8,578 million.
c. 0.45.
d. 0.68.
Transcribed Image Text:
Buffalo Bell Corporation Consolidatcd Statements of Financial Position (In millions) December 31, 2012 2011 Assets: Current Assets $ 4,333 3,400 Cash and cash equivalents $ 4,226 Accounts and notes receivable 2,403 Short-term investments 845 520 Inventories, at cost 433 411 Prepaid expense and other current assets 1,638 1,226 Total current assets 10,649 8,786 Property and equipment, net 1,555 907 Investments 6,804 5,199 Other non-current assets 303 155 Total assets $19,311 $15,047 Liabilities and stockholders' equity: Current liabilities $ 6,009 3,033 9,042 Accounts payable $ 7,708 Accrued and other liabilities 3,676 Total current liabilities 11,384 Long-term debt 304 305 Other non-current liabilities 1,701 13,389 1,179 Total liabilities 10,526 Stockholders' equity Preferred stock and capital in excess of $0.02 par value; shares issued and outstanding: none Common stock and capital in excess of $0.05 par value; shares authorized: 6,000; shares issued: 2,163 and 1,903, respectively Treasury stock, at cost: 183 and 123 shares, respectively Retained earnings Other comprehensive loss Other 7,803 7,001 (6,444) (4,401) 4,676 1,990 (79) (25) (34) (44) Total stockholders' equity Total liabilities and stockholders' equity 5,922 4,521 $19,311 $15,047 Buffalo Bell Corporation Consolidated Statements of Income (In millions, except per share amounts) Year ended December 31, 2012 $42,666 2011 2010 Net Revenue Cost of goods sold $35,220 $31,111 35,147 29,255 25,492 Gross profit Operating expenses: Selling, general, and administrative Research, development, and engineering Special charges Total operating expenses Operating income 7,519 5,965 5,619 3,341 3,250 2,985 544 53 536 512 3,885 3,803 4,033 3,634 2,162 1,586 Investment and other income (loss), net Income before income taxes 153 196 (30) 3,787 2,358 1,556 Income tax expense 1,136 940 472 Net income $ 2,651 $ 1,418 $ 1,084 Earnings per common share: Basic $ 1.41 $ 0.95 $ 0.37
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