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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