VerizonWirelessBalance Sheet Data (Partial) andAnalysis(In millions)Current YearAnalysisPrior YearAnalysis...VerizonWirelessBalance Sheet Data (Partial) andAnalysis(In millions)Current YearAnalysisPrior...

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Accounting

VerizonWireless
Balance Sheet Data (Partial) andAnalysis
(In millions)
Current Year Analysis Prior Year Analysis
Current assets $         2,290 $           669
Current liabilities            2,257            2,172
Current ratio 1.01 0.31
Total liabilities $         9,801 $         9,854
Total assets            5,131            6,200
Debt to assets ratio 1.91 1.59
If Verizon paid off $1 billion
of current liabilities with cash:
Current assets
Current liabilities
Current ratio
Total liabilities
Total assets
Debt to assets ratio

Answer & Explanation Solved by verified expert

3.9 Ratings (695 Votes)

The question states that $ 1 billion = $ 1,000 millions.

Current Assets will decrease by $ 1000 millions and hence Total assets will decrease by $ 1000 millions

Current Liabilities will decrease by $ 1000 million sand hence total liabilities will decrease by $ 1000 million

Requirement completed:

	Current Year		Prior Year
Current assets	$ 2,290.00		$ 669.00
Current liabilities	$ 2,257.00		$ 2,172.00
Current ratio		1.01		0.31

Total liabilities	$ 9,801.00		$ 9,854.00
Total assets	$ 5,131.00		$ 6,200.00
Debt to assets ratio		1.91		1.59


If Verizon paid off $1 billion
of current liabilities with cash:

Current assets	$ 1,290.00		$ (331.00)
Current liabilities	$ 1,257.00		$ 1,172.00
Current ratio		1.03		-0.28

Total liabilities	$ 8,801.00		$ 8,854.00
Total assets	$ 4,131.00		$ 5,200.00
Debt to assets ratio		2.13		1.70

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Transcribed Image Text

In: AccountingVerizonWirelessBalance Sheet Data (Partial) andAnalysis(In millions)Current YearAnalysisPrior YearAnalysis...VerizonWirelessBalance Sheet Data (Partial) andAnalysis(In millions)Current YearAnalysisPrior YearAnalysisCurrent assets$ 2,290$ 669Current liabilities 2,257 2,172Current ratio1.010.31Total liabilities$ 9,801$ 9,854Total assets 5,131 6,200Debt to assets ratio1.911.59If Verizon paid off $1 billionof current liabilities with cash:Current assetsCurrent liabilitiesCurrent ratioTotal liabilitiesTotal assetsDebt to assets ratio