Question

Net sales $7,245,088 $6,944,296 $6,149,218 Cost of goods sold (5,286,253) (4,953,556) (4,355,675) Gross margin $1,958,835 $1,990,740...

Net sales $7,245,088 $6,944,296 $6,149,218
Cost of goods sold (5,286,253) (4,953,556) (4,355,675)
Gross margin $1,958,835 $1,990,740 $1,793,543
General and administrative expenses (1,259,896) (1,202,042) (1,080,843)
Special and nonrecurring items 2,617 - -
Operating income $701,556 $788,698 $712,700
Interest expense (63,685) (62,398) (63,927)
Other income 7,308 10,080 11,529
Gain on sale of investments - 9,117 -
Income before income taxes $645,179 $745,497 $660,302
Provision for income taxes 254,000 290,000 257,000
Net income $391,179 $455,497 $403,302
Net income per share $1.08 $1.25 $1.11
Remington Inc.
Consolidated Balance Sheets
(In thousands)
ASSETS Dec. 31, 2019 Dec. 31, 2018
Current assets:
Cash and equivalents $320,558 $41,235
Accounts receivable 1,056,911 837,377
Inventories 733,700 803,707
Other 109,456 101,811
Total current assets $2,220,625 $1,784,130
Property and equipment, net 1,666,588 1,813,948
Other assets 275,342 248,372
Total assets $4,162,555 $3,846,450
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $250,363 $309,092
Accrued expenses 347,892 274,220
Other current liabilities 15,700 -
Income taxes 93,489 137,466
Total current liabilities $707,444 $720,778
Long-term debt $650,000 $541,639
Deferred income taxes 275,101 274,844
Other long-term liabilities 61,267 41,572
Total liabilities $1,693,812 $1,578,833
Stockholders' equity:
Common and preferred stock $189,727 $189,727
Additional paid-in capital 128,906 127,776
Retained earnings 2,397,112 2,136,794
$2,715,745 $2,454,297
Less: Treasury stock, at cost (247,002) (186,680)
Total stockholders' equity 2,468,743 $2,267,617
Total liabilities and stockholders' equity 4,162,555 $3,846,450

Required:

Using Remington's financial statements as shown above, respond to the following requirements.

1. Compute the five debt management ratios for 2018 and 2019. Round your answers to two decimal places.

2019 2018
Times interest earned
Debt to equity ratio
Debt to total assets ratio
Long-term debt to equity ratio
Long-term debt to total assets ratio

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