Question
In: Accounting
ssume the data presented below are from the financial statements of JetBlue and Southwest Airlines. ($...
ssume the data presented below are from the financial statements of JetBlue and Southwest Airlines.
|
($ millions) |
Jet Blue Airways |
Southwest Airlines |
|---|---|---|
| Total Liabilities, 2013 | $4,059 | $10,326 |
| Total Liabilities, 2012 | 5,003 | 8,815 |
| Total Assets, 2013 | 6,593 | 15,463 |
| Total Assets, 2012 | 6,549 | 14,269 |
| Revenue, 2013 | 3,779 | 12,104 |
| Net Income, 2013 | 237 | 629 |
Required
a. Compute the return on equity ratio for JetBlue and Southwest for
2013. (Round your answer to one decimal place.)
JetBlue Airways Answer%
Southwest Airlines Answer%
Which company earned the higher return for its shareholders?
AnswerSouthwest AirlinesJet Blue Airways
b. Compute the debt-to-equity ratio for each company as of December
31, 2013. (Round your answer to one decimal place.)
JetBlue Airways Answer
Southwest Airlines Answer
Which company relies more on creditor financing?
AnswerSouthwest AirlinesJet Blue Airways
c. For each firm, compute net income as a percentage of revenue in
2013. (Round your answer to one decimal place.)
JetBlue Airways Answer%
Southwest Airlines Answer%
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Suppose you have been presented with selected information taken from the financial statements of Southwest Airlines...
Suppose you have been presented with selected information taken
from the financial statements of Southwest Airlines Co., shown
below.
SOUTHWEST AIRLINES CO.
Balance Sheet (partial)
December 31
(in millions)
2022
2021
Total current assets
$2,780
$4,300
Noncurrent assets
10,300
12,615
Total assets
$13,080
$16,915
Current liabilities
$2,780
$4,890
Long-term liabilities
6,480
5,190
Total liabilities
9,260
10,080
Shareholders’ equity
3,820
6,835
Total liabilities and shareholders’
equity
$13,080
$16,915
Other information:
2022
2021
Net income (loss)
$ 150
$ 685
Income tax...
($ Millions) JetBlue Airways Southwest Airlines Total liabilities, 2017 $ 4,947 $  
($ Millions)
JetBlue Airways
Southwest Airlines
Total liabilities, 2017
$
4,947
$
13,973
Total current liabilities, 2017
$
2,395
$
6,905
Total liabilities, 2016
$
5,310
$
14,845
Total current liabilities, 2016
$
2,214
$
6,844
Total assets, 2017
$
9,781
$
25,110
Total current assets, 2017
$
1,206
$
4,815
Total assets, 2016
$
9,323
$
23,386
Total current assets, 2016
$
1,403
$
4,498
Revenue, 2017
$
7,015
$
21,171
Net income, 2017
$
1,147
$
3,488
(Please...
($ Millions) JetBlue Airways Southwest Airlines Total liabilities, 2017 $ 1,108 $  
($ Millions)
JetBlue Airways
Southwest Airlines
Total liabilities, 2017
$
1,108
$
13,973
Total liabilities, 2016
$
1,444
$
14,845
Total assets, 2017
$
9,781
$
25,110
Total current assets, 2017
$
1,206
$
4,815
Total assets, 2016
$
9,323
$
23,386
Total current assets, 2016
$
1,403
$
4,498
Revenue, 2017
$
7,015
$
21,171
Net income, 2017
$
1,147
$
3,488
(Please show calculations so I know how to do it)
a.) Compute the return on equity ratio...
($ Millions) JetBlue Airways Southwest Airlines Total liabilities, 2017 $ 4,947 $  
($ Millions)
JetBlue Airways
Southwest Airlines
Total liabilities, 2017
$
4,947
$
13,973
Total current liabilities, 2017
$
2,395
$
6,905
Total liabilities, 2016
$
5,310
$
14,845
Total current liabilities, 2016
$
2,214
$
6,844
Total assets, 2017
$
9,781
$
25,110
Total current assets, 2017
$
1,206
$
4,815
Total assets, 2016
$
9,323
$
23,386
Total current assets, 2016
$
1,403
$
4,498
Revenue, 2017
$
7,015
$
21,171
Net income, 2017
$
1,147
$
3,488
(Please...
Use Southwest Airlines’ 2016 financial statement information,below to answer the following:Calculate Southwest Airlines’return...
Use Southwest Airlines' 2016 financial statement information,
below to answer the following:Calculate Southwest Airlines’
return on assets (ROA) for the year ending December 31, 2016.Disaggregate Southwest
Airlines' ROA into profit margin (PM) and asset turnover (AT).
Explain what each ratio measures.($
millions)Total operating
revenues$20,425Net income2,244Total assets,
beginning of year21,312Total assets,
end of year23,286Equity, end of
year8,441
Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the return on...
Selected data from the financial statements of KRJ Manufacturing
are presented below. Calculate the return on assets for the year,
presenting your answer in percentage terms, rounded to two decimal
places. e.g. 20.00%.
Sales $117,358
Gross profits $51,639
Operating profits (EBIT) $32,879
Earnings before taxes (EBT) $25,389
Net profits $24,739
Tax expense 8,000
Depreciation expense $13,207
Total assets, beg of year $80,302
Total assets, end of year $99,082
Total equity, beg of year $46,237
Total equity, end of year $53,675...
Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the gross profit...
Selected data from the financial statements of KRJ Manufacturing
are presented below. Calculate the gross profit margin, presenting
your answer in percentage terms, rounded to two decimal places.
e.g. 20.00%.
Sales $107,262
Cost of goods sold $51,727
Operating profits (EBIT) $32,852
Earnings before taxes (EBT) $28,308
Net profits $18,706
Tax expense 8,310
Depreciation expense $14,562
Total assets, beg of year $89,075
Total assets, end of year $83,449
Total equity, beg of year $42,951
Total equity, end of year $40,310
Cash...
The Firm in Question is Southwest Airlines. The purpose is to evaluate the financial condition and...
The Firm in Question is Southwest Airlines. The purpose is to
evaluate the financial condition and performance of the firm by
analysis.
In an assessment of approximately 250 words, address the
following:
The Organizational and Operational Plans assignment references
the possible benefits and risks of forming a strategic alliance.
What would be the risks of forming a strategic alliance in terms of
the firm's profitability ratios? Which of those five ratios is most
likely to reveal immediate information for analysis...
The Firm in Question is Southwest Airlines. The purpose is to evaluate the financial condition and...
The Firm in Question is Southwest Airlines. The purpose is to
evaluate the financial condition and performance of the firm by
analysis.
In an assessment of approximately 250 words, address the
following:
Considering today's financial climate, how likely is it that
the organization could acquire the capital necessary to support an
aggressive value-enhancement strategy? From where would that
capital originate? Compared to current interest rates, what do you
believe is a realistic interest rate the firm might incur? Which of...
Canadian Bacon Inc. financial statements are presented in the table below.
a) Canadian Bacon Inc.
financial statements are presented in the table below. Based
on the information in the table, and using a 365-day year,
calculate operating cycle.Round the answers to two decimal placesBalance Sheet December 31, 2014Cash and marketable securities$132,000Accounts payable$399,000Accounts receivable$311,000Notes payable$98,500Inventories$512,000Accrued expenses$89,300Prepaid expenses$11,300Total current liabilities$586,800Total current assets$966,300Long-term debt$799,400Gross fixed assets$2,104,000Par value and paid-in-capital$298,000Less: accumulated depreciation$398,000Retained Earnings$988,100Net fixed assets$1,706,000Common Equity1,286,100Total assets$2,672,300Total liabilities and owner’s
equity$2,672,300Income Statement, Year of 2014Net sales (all credit)$4,276,600.00Less: Cost of goods sold$3,292,982.00Selling and administrative expenses$349,000.00Depreciation expense$148,000.00EBIT$486,618.00Interest expense$49,600.00Earnings...
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