Homework Answers
Solvency for a firm can be assessed using solvency ratios or leverage ratios. Some of the common leverage ratios are Debt to Equity ratio, Debt ratio and Interest coverage ratio.
Debt to Equity ratio for the firm in 2017 = Long term debt/ Total shareholders equity = 150/890 = 16.85%
D/E in 2016 = 200/891 = 22.44%
D/E in 2015 = 400/757 = 52.84%
D/E in 2014 = 500/402 = 124.37%
D/E in 2013 = 600/200 = 300%
We find that the D/E ratio has dipped considerably from 300% to 16.85 % for the firm which is a good sign as increased debt also increases the probability for default. So the solvency of the firm has improved from 2013 to 2017.
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1) Use the following data for a firm to assess solvency: 2013 BALANCE SHEETS 2016 2014...
CONSOLIDATED BALANCE SHEETS FOR TEST CORPORATION Oct 31, 2015 Oct 31, 2014 ASSETS Current Assets Cash...
CONSOLIDATED BALANCE SHEETS FOR TEST CORPORATION Oct 31, 2015 Oct 31, 2014 ASSETS Current Assets Cash and Cash Equivalents Accounts Receivables Inventory Total Current Assets 700 150 200 100 700 1000 250 1100 600 600 Property, Plant, and Equipment Property, Plant and Equipment*** Less Cumulative Depreciation Total Property, Plant, and Equipment 200 250 350 400 Total Assets 1,450 1,400 LIABILITIES Current Liabilities Accounts Payable Other Current Liabilities Total Current Liabilities 100 200 100 200 300 500 Long-term Liabilities Loan Total...
Table 1 2012-2016 Financial Statement Data and Stock Price Data for MyNature Income Statement MyNature Corp....
Table 1 2012-2016 Financial Statement Data and Stock Price Data for MyNature Income Statement MyNature Corp. 2012-2016(All data as of fiscal year end; S in millions) 2012 2013 2014 2015 2016 404.3363.8 424.6 510.7 604.1 188.3 -173.8 -206.2 -246.8 -293.4 216 218.4 263.9 310.7 66.7 -66.4 82.8-102. -120.8 -60.6 -59.-59.466.4 78.5 27.3-2734.3 38.4 -38.6 57 72.8 33.7 32.9-32.2 -37.4 -39.4 9.7 19.6 33.4 3.4 -6.9 11.7 6.3 127 21.7 Revenue Cost of Goods Sold Gross proft Sales and Marketing Administration...
Table 1 2012-2016 Financial Statement Data and Stock Price Data for MyNature Income Statement MyNature Corp....
Table 1 2012-2016 Financial Statement Data and Stock Price Data for MyNature Income Statement MyNature Corp. 2012-2016(All data as of fiscal year end; S in millions) 2012 2013 2014 2015 2016 404.3363.8 424.6 510.7 604.1 188.3 -173.8 -206.2 -246.8 -293.4 216 218.4 263.9 310.7 66.7 -66.4 82.8-102. -120.8 -60.6 -59.-59.466.4 78.5 27.3-2734.3 38.4 -38.6 57 72.8 33.7 32.9-32.2 -37.4 -39.4 9.7 19.6 33.4 3.4 -6.9 11.7 6.3 127 21.7 Revenue Cost of Goods Sold Gross proft Sales and Marketing Administration...
Use the data from below. For the most recent year (2014) calculate the following ratios. Current...
Use the data from below. For the most recent year (2014)
calculate the following ratios.
Current ratio
Inventory turnover
Rate of return on total assets
Accounts receivable turnover (assume all sales are on
account)
Debt ratio.
Data:
Additional information:
There were no write-offs of delinquent accounts during the
year.
A building was sold during the year for $120.
P.S: Explain calculations too please!
Nroklesah Company Comparative Balance Sheets and Income Statement For the Years 2013 and 2014 BALANCE SHEETS Assets...
Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance Sheets: 2013 2012 Cash and equivalents $100 $85 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,125 Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,750 $2,125 ...
Creating Balance Sheets and Income Statements Using the information in the below table, prepare a classified...
Creating Balance Sheets and Income
Statements
Using the information in the below table, prepare a classified
balance sheet for Arrow Company as of December 31, 2014 and
December 31, 2015, along with multi-step income statements for the
years then ended.
Account
December 31, 2014
December 31, 2015
Property, plant, and equipment (net)
$650
$735
Long-term debt
490
690
Depreciation expense
50
60
Retained earnings
130
295
Sales revenue
1,000
1,500
Income taxes
50
70
Current portion of long-term debt
50...
Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the...
Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2017 2016 Cash and equivalents $100 $85 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,125 Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Common stock 1,225 1,225 ...
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All o...
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2017 2016 Cash and equivalents $100 $85 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,125 $150 $85 Accounts payable 75 50 Accruals 75 150 Notes payable $210 $375 Total current liabilities 450 290 Long-term debt 1,225 1,225...
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All o...
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2016 2017 $100 $85 Cash and equivalents 200 Accounts receivable 275 375 250 Inventories $750 $635 Total current assets 2,000 1,490 Net plant and equipment $2,750 $2,125 Total assets $85 $150 Accounts payable 50 75 Accruals 75 150 Notes payable $210 $375 Total current liabilities 290 450 Long-term debt 1,225 1,225...
Part IV: Balance Sheet and Statement of Cash Flows (22 points) 1. The balance sheets for...
Part IV: Balance Sheet and Statement of Cash Flows (22 points) 1. The balance sheets for Smith Company showed the following information. Additional information concerning transactions and events during 2019 are presented below. $520 Smith Company Comparative Balance Sheet (in 5) 12/31/19 Cash 800 Short-term Investments 850 Accounts Receivable 500 Inventory 1,450 Prepaid Rent 1,500 Land 3.500 (600) Equipment $8.520 12/31/18 $130 200 400 550 1,300 2,500 3,200 1440 $7840 Accumulated Depreciation Total Assets $2,300 900 $1,800 1,600 2.300 5,700...
CONSOLIDATED BALANCE SHEETS FOR TEST CORPORATION Oct 31, 2015 Oct 31, 2014 ASSETS Current Assets Cash and Cash Equivalents Accounts Receivables Inventory Total Current Assets 700 150 200 100 700 1000 250 1100 600 600 Property, Plant, and Equipment Property, Plant and Equipment*** Less Cumulative Depreciation Total Property, Plant, and Equipment 200 250 350 400 Total Assets 1,450 1,400 LIABILITIES Current Liabilities Accounts Payable Other Current Liabilities Total Current Liabilities 100 200 100 200 300 500 Long-term Liabilities Loan Total...
Table 1 2012-2016 Financial Statement Data and Stock Price Data for MyNature Income Statement MyNature Corp. 2012-2016(All data as of fiscal year end; S in millions) 2012 2013 2014 2015 2016 404.3363.8 424.6 510.7 604.1 188.3 -173.8 -206.2 -246.8 -293.4 216 218.4 263.9 310.7 66.7 -66.4 82.8-102. -120.8 -60.6 -59.-59.466.4 78.5 27.3-2734.3 38.4 -38.6 57 72.8 33.7 32.9-32.2 -37.4 -39.4 9.7 19.6 33.4 3.4 -6.9 11.7 6.3 127 21.7 Revenue Cost of Goods Sold Gross proft Sales and Marketing Administration...
Table 1 2012-2016 Financial Statement Data and Stock Price Data for MyNature Income Statement MyNature Corp. 2012-2016(All data as of fiscal year end; S in millions) 2012 2013 2014 2015 2016 404.3363.8 424.6 510.7 604.1 188.3 -173.8 -206.2 -246.8 -293.4 216 218.4 263.9 310.7 66.7 -66.4 82.8-102. -120.8 -60.6 -59.-59.466.4 78.5 27.3-2734.3 38.4 -38.6 57 72.8 33.7 32.9-32.2 -37.4 -39.4 9.7 19.6 33.4 3.4 -6.9 11.7 6.3 127 21.7 Revenue Cost of Goods Sold Gross proft Sales and Marketing Administration...
Use the data from below. For the most recent year (2014)
calculate the following ratios.
Current ratio
Inventory turnover
Rate of return on total assets
Accounts receivable turnover (assume all sales are on
account)
Debt ratio.
Data:
Additional information:
There were no write-offs of delinquent accounts during the
year.
A building was sold during the year for $120.
P.S: Explain calculations too please!
Nroklesah Company Comparative Balance Sheets and Income Statement For the Years 2013 and 2014 BALANCE SHEETS Assets...
Creating Balance Sheets and Income
Statements
Using the information in the below table, prepare a classified
balance sheet for Arrow Company as of December 31, 2014 and
December 31, 2015, along with multi-step income statements for the
years then ended.
Account
December 31, 2014
December 31, 2015
Property, plant, and equipment (net)
$650
$735
Long-term debt
490
690
Depreciation expense
50
60
Retained earnings
130
295
Sales revenue
1,000
1,500
Income taxes
50
70
Current portion of long-term debt
50...
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2017 2016 Cash and equivalents $100 $85 Accounts receivable 275 200 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,125 $150 $85 Accounts payable 75 50 Accruals 75 150 Notes payable $210 $375 Total current liabilities 450 290 Long-term debt 1,225 1,225...
Quantitative Problem: Rosnan Industries' 2017 and 2016 balance sheets and income statements are shown below. All of the balance of Cash and Equivalents is an operating asset. Balance Sheets: 2016 2017 $100 $85 Cash and equivalents 200 Accounts receivable 275 375 250 Inventories $750 $635 Total current assets 2,000 1,490 Net plant and equipment $2,750 $2,125 Total assets $85 $150 Accounts payable 50 75 Accruals 75 150 Notes payable $210 $375 Total current liabilities 290 450 Long-term debt 1,225 1,225...
Part IV: Balance Sheet and Statement of Cash Flows (22 points) 1. The balance sheets for Smith Company showed the following information. Additional information concerning transactions and events during 2019 are presented below. $520 Smith Company Comparative Balance Sheet (in 5) 12/31/19 Cash 800 Short-term Investments 850 Accounts Receivable 500 Inventory 1,450 Prepaid Rent 1,500 Land 3.500 (600) Equipment $8.520 12/31/18 $130 200 400 550 1,300 2,500 3,200 1440 $7840 Accumulated Depreciation Total Assets $2,300 900 $1,800 1,600 2.300 5,700...
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