Alvarez Company had the following results:
Long-term debt (average rate of interest is 8%)
$400,000
Interest...
Alvarez Company had the following results:
Long-term debt (average rate of interest is 8%)
$400,000
Interest expense
42,000
Net income
58,000
Income tax
35,000
Depreciation and amortization expense
20,000
Operating income
126,000
What is the Times Interest Earned ratio?
a.
3.7
b.
3.0
c.
3.2
d.
9.5
e.
1.4
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Question 231 pts
Soni Manufacturing reports the following capital structure:
Current liabilities
P100,000...
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Question 231 pts
Soni Manufacturing reports the following capital structure:
Current liabilities
P100,000
Long-term debt
400,000
Deferred income taxes
10,000
Preferred stock
80,000
Common stock
100,000
Premium on common stock
180,000
Retained earnings
170,000
What is the debt ratio?
Group of answer choices
0.49
0.93
0.48
0.96
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Question 241 pts
Medi Company had the following financial statistics for
2020:
Long-term debt (average rate of interest rate is 8%)
P400,000
Interest expense
35,000
Net income...
Times interest earned
A company reports the following:
Income before income tax
$4,348,500
Interest expense
195,000...
Times interest earned
A company reports the following:
Income before income tax
$4,348,500
Interest expense
195,000
Determine the times interest earned ratio. If required, round
the answer to one decimal place.
A Company has the following financial information for its first
year in business:
cash of $242,...
A Company has the following financial information for its first
year in business:
cash of $242, accounts receivable of $850, inventory of $820,
net fixed assets of $3,408, accounts payable of $700, short-term
notes payable of $740, long-term liabilities of $1,100, common
stock of $1,160, retained earnings of $1,620, net sales of $2,768,
cost of goods sold of $1,210, depreciation of $360, interest
expense of $160, taxes of $312, addition to retained earnings of
$508, and dividends paid of $218....
Financial Analysis
Hewlett-Packard Company (HPQ)
Johnson and Johnson (JNJ)
The Kraft Heinz Company (KHC)
Macy's, Inc....
Financial Analysis
Hewlett-Packard Company (HPQ)
Johnson and Johnson (JNJ)
The Kraft Heinz Company (KHC)
Macy's, Inc. (M)
Current Ratio = Current Assets / Current Liabilities
1
1.41
0.72
1.47
Total assets turnover ratio = Sales / Total assets
1.68
1.33
0.22
1.27
Times interest earned = EBIT / Interest expense
11.6
1992.18
5.48
5.81
Debt-to-equity ratio = Total debt / Total equity
-2.29
0.58
0.48
1.04
Net Income / Net Sales (percent) or Return on Sales (ROS)
4.85%
1.70%
41.93%...
Section 2:
Assume the following Balance Sheet for a company:
BALANCE SHEET
ASSETS
Cash $ 5,000...
Section 2:
Assume the following Balance Sheet for a company:
BALANCE SHEET
ASSETS
Cash $ 5,000
Accounts Receivable $125,000
Inventory $200,000
Land $70,000
Buildings $200,000
Less: Accumulated Depreciation $100,000
Total Assets $500,000
LIABILITIES AND EQUITY
Accounts Payable $100,000
Income Tax Payable $50,000
Mortgage Loan $200,000
Common Stock $100,000
Retained Earnings $50,000
Total Liabilities and Equity $500,000
Compute the current ratio for this company.
Group of answer choices
3.25
2.20
3.30
2.17
Using the same Balance Sheet from the prior question,...
1. A corporation reports the following balances and
amounts:
Accounts payable, $50,000
Cash provided...
1. A corporation reports the following balances and
amounts:
Accounts payable, $50,000
Cash provided by operations, $100,000
Accounts receivable, $35,000
Net income, $40,000
Average number of common shares, 15,000
Salaries and wages payable, $40,000
Average current liabilities, $225,000
Stockholders’ equity, $200,000
Average total assets, $600,000
Current assets, $300,000
Average total liabilities, $320,000
Current liabilities, $250,000
Dividends paid to preferred shareholders, $5,000
Determine its earnings per share?
Group...
The Rivoli Company has no debt outstanding, and its financial
position is given by the following...
The Rivoli Company has no debt outstanding, and its financial
position is given by the following data: Assets (Market value =
book value) $3,000,000 EBIT $500,000 Cost of equity, rs 10% Stock
price, Po $15 Shares outstanding, no 200,000 Tax rate, T
(federal-plus-state) 40% The firm is considering selling bonds and
simultaneously repurchasing some of its stock. If it moves to a
capital structure with 25% debt based on market values, its cost of
equity, rs, will increase to 11%...
Wildhorse Company reports pretax financial income of $76,100 for
2020. The following items cause taxable income...
Wildhorse Company reports pretax financial income of $76,100 for
2020. The following items cause taxable income to be different than
pretax financial income. 1. Depreciation on the tax return is
greater than depreciation on the income statement by $16,700. 2.
Rent collected on the tax return is greater than rent recognized on
the income statement by $22,700. 3. Fines for pollution appear as
an expense of $11,100 on the income statement.
Wildhorse’s tax rate is 30% for all years, and...
The Rivoli Company has no debt outstanding, and its financial
position is given by the following...
The Rivoli Company has no debt outstanding, and its financial
position is given by the following data:
Assets (Market value = book value)
$3,000,000
EBIT
$500,000
Cost of equity, rs
10%
Stock price, Po
$15
Shares outstanding, no
200,000
Tax rate, T (federal-plus-state)
40%
The firm is considering selling bonds and simultaneously
repurchasing some of its stock. If it moves to a capital structure
with 35% debt based on market values, its cost of equity,
rs, will increase to 11%...