Question
In: Finance
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co.,
compute the following ratios:
| TIMES MIRROR AND GLASS COMPANY | ||
| Sales | $ | 244,000 |
| Cost of goods sold | 135,000 | |
| Gross profit | $ | 109,000 |
| Selling and administrative expense | 47,900 | |
| Lease expense | 18,200 | |
| Operating profit* | $ | 42,900 |
| Interest expense | 8,300 | |
| Earnings before taxes | $ | 34,600 |
| Taxes (30%) | 13,840 | |
| Earnings after taxes | $ | 20,760 |
| *Equals income before interest and taxes. | ||
a. Compute the interest coverage ratio.
(Round your answer to 2 decimal places.)
b. Compute the fixed charge coverage ratio.
(Round your answer to 2 decimal places.)
The total assets for this company equal $240,000. Set up the
equation for the Du Pont system of ratio
analysis.
c. Compute the profit margin ratio. (Input
your answer as a percent rounded to 2 decimal
places.)
d. Compute the total asset turnover ratio.
(Round your answer to 2 decimal places.)
e. Compute the return on assets (investment).
(Do not round intermediate calculations. Input your answer
as a percent rounded to 2 decimal places.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co.,
compute the following ratios:
TIMES MIRROR AND GLASS Co.
Income Statement
Sales
$
281,000
Cost of goods sold
169,000
Gross profit
$
112,000
Selling and administrative
expense
44,800
Lease expense
17,500
Operating profit*
$
49,700
Interest expense
8,100
Earnings before taxes
$
41,600
Taxes (30%)
16,640
Earnings after taxes
$
24,960
*Equals income before interest
and taxes.
a.Compute the interest coverage ratio.
(Round your answer to 2 decimal places.)
...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co.,
compute the following ratios: TIMES MIRROR AND GLASS Co. Income
Statement Sales $ 277,000 Cost of goods sold 165,000 Gross profit $
112,000 Selling and administrative expense 43,200 Lease expense
13,500 Operating profit* $ 55,300 Interest expense 10,100 Earnings
before taxes $ 45,200 Taxes (30%) 18,080 Earnings after taxes $
27,120 *Equals income before interest and taxes. a.Compute the
interest coverage ratio. (Round your answer to 2 decimal places.)
b.Compute...
Using the income statement for the Sports Car Tire Company, compute the following ratios (show formula...
Using the income statement for the Sports Car Tire Company,
compute the following ratios (show formula + calculations):
a. Interest coverage
b. The fixed charge coverage
The total assets for this company equal $40,000. Set up the
formula for the DuPont system ratio analysis, and compare c,d and
e.
c. Profit margin
d. Total asset turnover
e. Return on assets (investment)
The Sports Car Tire Company
Sales $20,000
Less: Cost of goods sold 9,000
Gross profit 11,000
Less: Selling and...
Compute the sustainable growth rate for Hazard Co using theinformation on the following ratios for...
Compute the sustainable growth rate for Hazard Co using the
information on the following ratios for the company. You may assume
the ratios are constant over time. Total asset turnover 1.29 Profit
margin 8.9% Equity multiplier 1.7 Payout ratio 61%Multiple Choice -3.04% 8.24% 13.61% -4.67% 8.44%
Given the income statement and balance sheet for Medical Equipment Corporation, compute the ratios that are...
Given the income statement and balance sheet for Medical
Equipment Corporation, compute the ratios that are also shown for
the industry average. For each ratio, indicate whether Medical
Equipment Corporation is better (B) or worse (W) than the industry
average. Show work
Income Statement
Sales (all credit)
$1,607,500
Less: Cost of goods sold
1,353,000
Gross profit
$254,500
Less: Selling and administrative expenses*
184,500
Operating profit (EBIT)
$70,000
Less: Interest expense
24,500
Earnings before taxes (EBT)
$45,500
Less...
Compute the following ratios for both years (2019 and 2018), using total net income and assets....
Compute the following ratios for both years (2019 and 2018),
using total net income and assets. Use ending balance sheet
figures.
net profit margin
return on total assets (use year-end total assets)
2019
2018
Net sales
$65,000
$61,000
Equity income (dividends: $65,$62)
320
365
Total
$65,320
$61,365
Total expenses, including taxes
63,800
59,700
Net income
$ 1,520
$ 1,665
Total assets
$32,200
$30,600
Investment (using equity method)
3,800
2,800
Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and...
Compute and Interpret Liquidity, Solvency and Coverage
Ratios
Information from the balance sheet, income statement, and
statement of cash flows for Nike follows. Refer to these financial
statements to answer the requirements.
NIKE, INC.
Consolidated Statements of Income
Year Ended December 31 (In millions)
2019
2018
Revenues
$39,117
$36,397
Cost of sales
21,643
20,441
Gross profit
17,474
15,956
Demand creation expense
3,753
3,577
Operating overhead expense
8,949
7,934
Total selling and administrative expense
12,702
11,511
Interest expense (income), net
49...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage
Ratios
Selected balance sheet and income statement information for Calpine
Corporation for 2004 and 2006 follows.
($ millions)
2004
2006
Cash
$ 1,376.73
$ 1,503.36
Accounts receivable
1,097.16
735.30
Current assets
3,563.56
3,168.33
Current liabilities
3,285.39
6,057.95
Long-term debt
16,940.81
3,351.63
Short-term debt
1,033.96
4,568.83
Total liabilities
22,628.42
25,743.17
Interest expense
1,516.90
1,288.29
Capital expenditures
1,545.48
211.50
Equity
4,587.67
(7,152.90)
Cash from operations
9.89
155.98
Earnings before interest and taxes
1,589.84
1,877.84
(a)...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios
Selected balance sheet and income statement information for
Nordstrom, Inc. for 2016 and 2015 follows. ($ millions) 2016 2015
Cash $ 595 $ 827 Accounts receivable 196 2,306 Current assets 3,014
5,224 Current liabilities 2,911 2,800 Long-term debt 2,795 3,123
Short-term debt 10 8 Total liabilities 6,827 6,805 Interest expense
153 156 Capital expenditures 1,082 861 Equity 871 2,440 Cash from
operations 2,451 1,220 Earnings before interest and taxes 1,101
1,323 (a)...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage
Ratios
Selected balance sheet and income statement information for
Nordstrom, Inc. for 2014 and 2013 follows.
($ millions)
2014
2013
Cash
$ 1,194
$ 1,285
Accounts receivable
2,177
2,129
Current assets
5,228
5,081
Current liabilities
2,541
2,226
Long-term debt
3,113
3,131
Short-term debt
0
0
Total liabilities
6,494
6,176
Interest expense
161
160
Capital expenditures
803
513
Equity
2,080
1,913
Cash from operations
1,320
1,110
Earnings before interest and taxes
1,350
1,345
(a)...
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