Homework Answers
| 2)Calculation of time interest earned ratio: | |||
| Time Interest Earned Ratio= Earning before Interest and tax/ interest expense | |||
| Earning before interest and tax= Net income+tax+interest expense | |||
| =53000+45000+25000= $123000 | |||
| Time Interest Earned Ratio= 123000/25000=4.92 | |||
| 3)Calcualtion of debt/ assets ratio: | |||
| Debt/assets ratio= Total liabilities/Total assets | |||
| Total assets= Total liabilities & stockholders equity=$1157000 | |||
| Debt/assets ratio=495000/1157000=0.43 | |||
| 4)Calcualtion of debt/equity ratio: | |||
| Debt/equity ratio= Total liabilities/stockholder's equity | |||
| Debt/equity ratio=495000/662000=0.75 | |||
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Use the following financial information for questions 2-4 below: From the income statement: Depreciation expense Interest...
From the income statement: Depreciation expense Interest expense $165,000 22,000 Income tax Net income 30,000...
From the income statement: Depreciation expense Interest expense $165,000 22,000 Income tax Net income 30,000 80,000 From the balance sheet: Current liabilities $90,000 Long-term debt 660,000 Deferred income taxes 35,000 Total Liabilities $785,000 Preferred stock 8,000 Common stock 235,000 Premium on common stock 150,000 Retained earnings 560,000 Total Stockholders’ Equity $953,000 Total Liabilities & Stockholders’ Equity $1,738,000 1. What is the Times Interest Earned ratio? _________ /_______ = ___________ please show work!:)
The Amos Corporation reported the following income statement and balance sheet amounts and additional information for...
The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current year End of prior year Net sales revenue (all credit) $1,220,000 Cost of goods sold $725,000 Gross profit $495,000 Selling/general expenses $280,000 Interest expense $48,000 Net Income $167,000 Current assets $113,000 $82,000 Longminus−term assets $512,000 $440,000 Total assets $625,000 $522,000 Current liabilities $57,000 $52,000 Longminus−term liabilities $275,000 $245,000 Common stockholders' equity $293,000 $225,000 Total liabilities...
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales...
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense $190,000 112,000 $167,000 100,000 67,000 53,000 14,000 4,000 10,000 78,000 56,000 Pretax income 22,000 8,000 14,000 Income tax Net income Balance sheet: $ 4,000 14,000 40,000 ,000 $103,000 $ 16,000 Cash Accounts receivable (net 7,000 18,000 34,000 38,000 97,000 Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities...
The Amos Corporation reported the following income statement and balance sheet amounts and additional information for...
The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current year End of prior year Net sales revenue (all credit) $ 1 comma 520 comma 000$1,520,000 Cost of goods sold $ 1 comma 025 comma 000$1,025,000 Gross profit $495,000 Selling/general expenses $280,000 Interest expense $42,000 Net Income $173,000 Current assets $ 116 comma 000$116,000 $82,000 Longminus−term assets $ 509 comma 000$509,000 $440,000 Total assets $625,000...
Baker Industries’ net income is $27,000, its interest expense is $4,000, and its tax rate is...
Baker Industries’ net income is $27,000, its interest expense is $4,000, and its tax rate is 45%. Its notes payable equals $25,000, long-term debt equals $75,000, and common equity equals $245,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculation
Required information [The following information applies to the questions displayed below.] Income statements and balance sheets...
Required information [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 $3,545,000 2,487,000 1,058,000 $3,071,000 1,957,000 1,114,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense 962,000 37,000 865,000 30,500 8,700 18,500 51,500 974,200 Loss on sale of land Interest expense 21,500 8,700 1,029,200 Income tax expense Total expenses $...
1) Based on the balance sheet and income statement information given below, calculate the following financial...
1) Based on the balance sheet and income statement information
given below, calculate the following financial ratios and explain
briefly what the number you calculated means:
a) Current ratio
b) Acid-test ratio
c) Days in receivables
d) Debt ratio
e) Return on equity
Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) $5,925,000 $9,000,000 Liabilities: Accounts payable Notes payable...
1) Based on the balance sheet and income statement information given below, calculate the following financial...
1) Based on the balance sheet and income statement information
given below, calculate the following financial ratios and explain
briefly what the number you calculated means:
a) Current ratio
b) Acid-test ratio
c) Days in receivables
d) Debt ratio
e) Return on equity
Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) $5,925,000 $9,000,000 Liabilities: Accounts payable Notes payable...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for...
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[The following information applies to the questions displayed below.] The comparative financial statements for Prince Company...
[The following information applies to the questions displayed below.] The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $190,000 112,000 78,000 56,000 22,000 8,000 $167,000 100,000 67,000 53,000 14,000 4,000 $10,000 Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax $14,000 Net income Balance sheet: Cash Accounts receivable (net) Inventory 4,000 14,000 40,000 45,000 $ $7,000 18,000 34,000 38,000 $97,000 $ 17,000 45,000 30,000 5,000 97,000...
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense $190,000 112,000 $167,000 100,000 67,000 53,000 14,000 4,000 10,000 78,000 56,000 Pretax income 22,000 8,000 14,000 Income tax Net income Balance sheet: $ 4,000 14,000 40,000 ,000 $103,000 $ 16,000 Cash Accounts receivable (net 7,000 18,000 34,000 38,000 97,000 Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities...
Required information [The following information applies to the questions displayed below.] Income statements and balance sheets data for Virtual Gaming Systems are provided below. VIRTUAL GAMING SYSTEMS Income Statements For the years ended December 31 2022 2021 $3,545,000 2,487,000 1,058,000 $3,071,000 1,957,000 1,114,000 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense 962,000 37,000 865,000 30,500 8,700 18,500 51,500 974,200 Loss on sale of land Interest expense 21,500 8,700 1,029,200 Income tax expense Total expenses $...
1) Based on the balance sheet and income statement information
given below, calculate the following financial ratios and explain
briefly what the number you calculated means:
a) Current ratio
b) Acid-test ratio
c) Days in receivables
d) Debt ratio
e) Return on equity
Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) $5,925,000 $9,000,000 Liabilities: Accounts payable Notes payable...
1) Based on the balance sheet and income statement information
given below, calculate the following financial ratios and explain
briefly what the number you calculated means:
a) Current ratio
b) Acid-test ratio
c) Days in receivables
d) Debt ratio
e) Return on equity
Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets $600,000 900,000 1,500,000 75,000 $3,075,000 8,000,000 (2,075,000) $5,925,000 $9,000,000 Liabilities: Accounts payable Notes payable...
[The following information applies to the questions displayed below.] The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $190,000 112,000 78,000 56,000 22,000 8,000 $167,000 100,000 67,000 53,000 14,000 4,000 $10,000 Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax $14,000 Net income Balance sheet: Cash Accounts receivable (net) Inventory 4,000 14,000 40,000 45,000 $ $7,000 18,000 34,000 38,000 $97,000 $ 17,000 45,000 30,000 5,000 97,000...
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