Question

Discontinued operations 10.03) 0.01 0.01 0.01 0.01 Net earnings per share $ 150 $ 1.70 $ 1.47 $ 1.38 $ 1.26 prin lease patients were all $10.000, 2010, 527,000, 2009, 528,500, 200, 50,DUDE 2007, $27.000 dollar in thousandu) P 7-11 Required Answer the following multiple choice questions: Which of the following ratios can be used as a guide to a firm's ability to carry debt from an income perspective? 1. Debt ratio 2. Debt to tangible net worth 3. Debt/equity 4. Times interest earned 5. Current ratio b. There is disagreement on all but which of the following items as to whether it should be considered a liability in the debt ratio? 1. Short-term liabilities 2. Reserve accounts 3. Deferred taxes 4. Noncontrolling income (loss) 5. Preferred stock (continued

Answer 1

As per HOMEWORKLIB RULES, we can answer first four parts. So there you go.

P-7-11

a. Ratio that can be used as a guide to a firm's ability to carry debt is Times interest earned ratio which indicates a long-term debt-paying ability of the firm and meet its debt obligations based on its current income. It helps focus on the long term problem. It measures the ability of an organization to pay its debt obligations

b. There is disagreement on all but which of the following items as to whether it should be considered a liability in the debt ratio-

Preferred stock which is owned by stockholders.

c. A firm may have substantial liabilities that are not disclosed on the face of the balance sheet from all but which of the following-

Bonds payable liability appears within the long-term liabilities section of the balance sheet. It is the form of long term debt usually issued by corporations, hospitals, and governments.

d. In computing the debt ratio, which of the following is subtracted in the denominator

None of these assets are subtracted

Debt ratio is calculated by dividing total liabilities by total assets.