The balance sheets and income statements for Omni Communications follow:
A. Compute the company's current ratio for 2016 and 2015. Comment on any observed trend.
B. Compute the company's times interest earned and debt-to-equity ratio for 2016 and 2015. Comment on any observed trend.
C. Summarize your findings in a conclusion about the company's liquidity and solvency. Do you have any concerns about the company's ability to meet its debt obligations?

Question

The balance sheets and income statements for Omni Communications follow: 
    A. Compute the company's current ratio for 2016 and 2015. Comment on any observed trend.
B. Compute the company's times interest earned and debt-to-equity ratio for 2016 and 2015. Comment on any observed trend.
C. Summarize your findings in a conclusion about the company's liquidity and solvency. Do you have any concerns about the company's ability to meet its debt obligations?

Quizplus · Accepted Answer

The Answer of The balance sheets and income statements for Omni Communications follow: 
    A. Compute the company's current ratio for 2016 and 2015. Comment on any observed trend.
B. Compute the company's times interest earned and debt-to-equity ratio for 2016 and 2015. Comment on any observed trend.
C. Summarize your findings in a conclusion about the company's liquidity and solvency. Do you have any concerns about the company's ability to meet its debt obligations?

The Balance Sheets and Income Statements for Omni Communications Follow