ASSIGNMENT IS DUE TOMORROW SATURDAY JULY 2ND AT 9 PMEASTERN TIME NO APA NEEDED FOR TOM MUTUNGAAA ONLYYYYYYYYYYYYYYYYYYYY 1) Sandra, Interesting information! Should individual income taxes be reduced in Colorado? Why or why not? 2) Sandra, Cash flow from operations is weak and not able to cover the debt. What does Under Armour need to do to improve on their cash flow? 2) Facebook, Inc. Cash Flow Ratios: (Industry: Internet Information Provider) The operating cash flow to current liabilities measures the firms liquidity and ability to pay short-term debts. The higher the ratio, the better. Facebook slightly declined from 2013 to 2014, and increased in 2015. In 2015 Facebook was able to pay its current liabilities 4.47 times. The operating cash flow to debt ratio measures the firms ability to cover all debt with the cash flow from the specified year. The higher the ratio, the better. Facebook declined
from 2013 to 2014, and increased from 2014 to 2015, but not to where they stood in 2013. The cash inflow is significant in relation to total debt. In 2015 Facebook was able to cover its debt 1.66 times, or 166%. The operating cash flow per share is the available funds er share outstanding. It measures the firms ability to make expenditure decisions and pay dividends. In 2015, the cash flow per share was $3.72 per share. Differences in this number can vary from year to year based on purchases, such as land and utilities. It is a useful ratio if compared over longer periods. Facebook has one of the highest in the industry of internet information providers, second to Google, Inc. The operating cash flow to cash dividends measures the firms ability to cover cash dividends with the specified yearly cash flow. Facebook currently does not pay dividends so they are in no danger of not being able to pay them.