Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 92

Calculating and Interpreting the Quick Ratio and Times Interest Earned Ratio
At December 31, 2010, Kraft Foods Inc. reported no short-term investments but did report the following amounts (in millions) in its financial statements:

Required:
1. Compute the quick ratio and times interest earned ratio (to two decimal places) for 2010 and 2009.
2. Did Kraft appear to have increased or decreased its ability to pay current liabilities and future interest obligations as they become due