Question
In: Accounting
Long-term debt ratio 0.3 Times interest earned 10.0 Current ratio 1.1 Quick ratio 1.0 Cash ratio...
| Long-term debt ratio | 0.3 | ||
| Times interest earned | 10.0 | ||
| Current ratio | 1.1 | ||
| Quick ratio | 1.0 | ||
| Cash ratio | 0.4 | ||
| Inventory turnover | 3.0 | ||
| Average collection period | 73 | days | |
Use the above information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Long-term debt ratio 0.3 Times interest earned 8.0 Current ratio 1.4 Quick ratio 1.0 Cash ratio...
Long-term debt ratio
0.3
Times interest earned
8.0
Current ratio
1.4
Quick ratio
1.0
Cash ratio
0.4
Inventory turnover
4.0
Average collection period
73
days
Use the above information from the tables to work out the
following missing entries, and then calculate the company’s return
on equity. Note: Turnover and the average collection period are
calculated using start-of-year, not average, values. (Enter
your answers in millions. Round intermediate calculations and final
answers to 2 decimal places.)
INCOME STATEMENT
(Figures in...
Long-term debt ratio 0.3 Times interest earned 8.0 Current ratio 1.4 Quick ratio 1.0 Cash ratio...
Long-term debt ratio 0.3 Times interest earned 8.0 Current ratio
1.4 Quick ratio 1.0 Cash ratio 0.4 Inventory turnover 4.0 Average
collection period 73 days Use the above information from the tables
to work out the following missing entries, and then calculate the
company’s return on equity. Note: Turnover and the average
collection period are calculated using start-of-year, not average,
values. (Enter your answers in millions. Round intermediate
calculations and final answers to 2 decimal places.)
COMPLETE THE INCOME STATEMENT...
Long-term debt ratio 0.4 Times interest earned 8.0 Current ratio 1.4 Quick ratio 1.0 Cash ratio...
Long-term debt ratio
0.4
Times interest earned
8.0
Current ratio
1.4
Quick ratio
1.0
Cash ratio
0.2
Inventory turnover
5.0
Average collection period
73
days
Use the above information from the tables to work out the
following missing entries, and then calculate the company’s return
on equity. Note: Turnover and the average collection period are
calculated using start-of-year, not average, values. (Enter
your answers in millions. Round intermediate calculations and final
answers to 2 decimal places.)
INCOME STATEMENT
(Figures in...
Long-term debt ratio 0.1 Times interest earned 8.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio...
Long-term debt ratio
0.1
Times interest earned
8.0
Current ratio
1.2
Quick ratio
1.0
Cash ratio
0.6
Inventory turnover
3.0
Average collection period
73
days
Use the above information from the tables to work out the
following missing entries, and then calculate the company’s return
on equity. Note: Turnover and the average collection period are
calculated using start-of-year, not average, values. (Enter
your answers in millions. Round intermediate calculations and final
answers to 2 decimal places.)
Questions marks are in...
Ratios: Current Ratio: 3.6093 Quick Ratio: 2.1799 Times Interest Earned: 9.9143 ROE &nbs
Ratios:
Current Ratio: 3.6093
Quick
Ratio: 2.1799
Times Interest Earned: 9.9143
ROE 16.48%
ROA 12.01%
Equity
Multiplier 1.3714
Inventory Turnover 1.3489
The DuPont Identity helps us to better understand why a firm
might have a poor ROE (Return on Equity). We can write
the DuPont Identity as follows:
ROE = (Net Income / Sales)(Sales / Assets)(Assets / Owner's
Equity)
Based on this, which of the following statements are true?
Select one:
a. If Sales remained constant but Net Income fell, the ROE would
rise, ceteris...
For each year (2019 and 2018) compute Times interest earned Debt ratio Debt/equity ratio Debt to...
For each year (2019 and 2018) compute
Times interest earned
Debt ratio
Debt/equity ratio
Debt to tangible net worth ratio
Balance Sheet
(in
thousands)
2019
2018
Current assets
$ 449,195
$ 433,049
Investments
32,822
55,072
Deferred charges
4,905
12,769
Property, plant, and equipment, net
350,921
403,128
Trademarks and leaseholds
45,031
47,004
Excess of cost over fair market value of net
assets acquired
272,146
276,639
Assets held for disposal
6,062
10,247
$1,161,082
$1,237,908
Total liabilities
$ 689,535
$ 721,149
Total stockholders' equity
471,547
516,759
$1,161,082...
Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Camper Company and McSead,...
Debt ratio, Ratio of Liabilities to Stockholders' Equity, and
Times Interest Earned
Camper Company and McSead, Inc., are the two largest toy
companies. Condensed liabilities and stockholders' equity from a
recent balance sheet are shown for each company as follows:
Camper
McSead
Current liabilities
$1,477,000
$3,246,000
Long-term debt
795,800
1,906,000
Total liabilities
$2,272,800
$5,152,000
Total stockholders' equity
3,788,000
6,440,000
Total liabilities and stockholders' equity
$6,060,800
$11,592,000
The income from operations and interest expense from the income
statement for both companies...
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term...
The Smathers Company has a long-term debt ratio (i.e., the ratio
of long-term debt to long-term debt plus equity) of .43 and a
current ratio of 1.27. Current liabilities are $2,395, sales are
$10,465, profit margin is 11 percent, and ROE is 16 percent.
What is the amount of the firm’s long-term debt? (Do not
round intermediate calculations and your answer to 2 decimal
places, e.g., 32.16.)
What is the amount of the firm’s total debt? (Do not
round intermediate...
The Kretovich Company had a quick ratio of 1.1, a current ratio of 3.5, a days'...
The Kretovich Company had a quick ratio of 1.1, a current ratio
of 3.5, a days' sales outstanding of 32.0 days (based on a 365-day
year), total current assets of $630,000, and cash and marketable
securities of $115,000. What were Kretovich's annual sales? Do not
round intermediate calculations. Round your answer to the nearest
cent.
Times-Interest-Earned Ratio The Morris Corporation has $700,000 of debt outstanding, and it pays an interest rate...
Times-Interest-Earned Ratio
The Morris Corporation has $700,000 of debt outstanding, and it
pays an interest rate of 10% annually. Morris's annual sales are
$3.5 million, its average tax rate is 35%, and its net profit
margin on sales is 3%. If the company does not maintain a TIE ratio
of at least 5 to 1, then its bank will refuse to renew the loan,
and bankruptcy will result.
1. What is Morris's TIE ratio? Do not round intermediate
calculations. Round...
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