Ratios Analyzing Long-Term Firm Solvency The following information is available for Banner Company: Annual Data 2019...
Ratios Analyzing Long-Term Firm Solvency
The following information is available for Banner Company:
| Annual Data | 2019 | 2018 |
|---|---|---|
| Interest expense | $85,000 | $82,000 |
| Income tax expense | 203,500 | 185,000 |
| Net income | 496,500 | 425,000 |
| Capital expenditures | 320,000 | 380,000 |
| Cash provided by operating activities | 450,000 | 390,000 |
| Year-End Data | Dec. 31, 2019 | Dec. 31, 2018 |
|---|---|---|
| Total liabilities | $2,400,000 | $1,900,000 |
| Total stockholders’ equity | 4,200,000 | 3,800,000 |
Calculate the following:
Note: Round all answers to two decimal
places.
a. 2019 debt-to-equity ratio.
b. 2019 times-interest-earned ratio.
c. 2019 operating-cash-flow-to-capital-expenditures ratio.
Homework Answers
a)Debt equity ratio=debt/equity
=$2400000/$4200000
=0.57
b)Times interest earned ratio:
=Net income before interest &i tax expense/interest expense
=($496500+$85000+$203500)/$85000
=$785000/$85000
=9.24
c)Operating cash flow to capital expenditure ratio
=$450000/$320000
=1.41
Add Answer to:
Ratios Analyzing Long-Term Firm Solvency
The following information is available for Banner Company:
Annual Data
2019...
Ratios Analyzing Long-Term Firm Solvency The following information is available for Banner Company: Annual Data 2019...
Ratios Analyzing Long-Term Firm Solvency The following information is available for Banner Company: Annual Data 2019 2018 Interest expense $85,000 $82,000 203,500 185,000 Income tax expense Net income 496,500 425,000 Capital expenditures 320,000 380,000 Cash provided by operating activities 450,000 390,000 Year-End Data Dec. 31, 2019 Dec. 31, 2018 Total liabilities $2,400,000 $1,900,000 Total stockholders equity 4,200,000 3,800,000 Calculate the following: Note: Round all answers to two decimal places. a. 2019 debt-to-equity ratio. b. 2019 times-interest-earned ratio. 0 c. 2019...
.04 Eİ48A. Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual...
.04 Eİ48A. Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data 2016 2015 . . . . 496,500 400,000 320,000 380,000 425,000 390,000 Cash provided by operating activities . . . . . . Year-End Data Dec. 31, 2016 Dec. 31, 2015 000 3,800,000 Calculate the following: a. 2016 debt-to-equity ratio b. 2016 times-interest-earned ratio c. 2016 operating-cash-flow-to-capital-expenditures ratio
Ratios Analyzing Firm Profitability The following information is available for Jay Company: Annual Data 2019 2018...
Ratios Analyzing Firm Profitability The following information is available for Jay Company: Annual Data 2019 2018 Net sales $9,000,000 $8,200,000 Gross profit on sales 3,050,000 2,736,000 Net income 567,600 500,000 Year-End Data Dec. 31, 2019 Dec. 31, 2018 Total assets $6,500,000 $6,000,000 Stockholders’ equity 5,000,000 3,200,000 Calculate the following ratios for 2019: Note: Round answers to one decimal place, unless otherwise noted. a. Gross profit percentage b. Return on sales c. Asset turnover (Round answer to two decimal places.) d....
Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Starbucks for 2018 and 2017 follows. ($ millions) Cash 2018 2017 $ 8,756.3 $2,462.3 181.5 228.6 Short-term investments Accounts receivable 693.1 870.4 Current assets 12,494.2 5,283.4 5,684.2 4,220.7 349.9 Current liabilities Short-term debt Long-term debt Total liabilities Interest expense Capital expenditures Equity Cash from operations Earnings before interest and taxes 9,090.2 3,932.6 22,980.6 8,908.6 170.3 92.5 1,976.4 1,519.4 1,175.8 5,457.0 11,937.8 4,251.8 3,883.3 4,134.7...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
Selected information follow for Bush Company: 2019 2018 Sales revenue $700,000 $520,000 Cost of goods sold...
Selected information follow for Bush Company: 2019 2018 Sales revenue $700,000 $520,000 Cost of goods sold 407,700 310,000 Interest expense 22,000 14,000 Income tax expense 6,500 5,100 Net income 30,000 20,300 Cash flow from operating activities 29,500 26,500 Capital expenditures 42,000 25,000 Accounts receivable (net), December 31 182,000 128,000 Inventory, December 31 225,000 180,000 Stockholders’ equity, December 31 205,000 165,000 Total assets, December 31 460,000 350,000 Required Calculate the following ratios for 2019. The 2018 results are given for comparative...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Nordstrom, Inc. for 2016 and 2015 follows. ole ($ millions) 2016 2015 Cash $ 595 $ 827 Accounts receivable 196 2,306 Current assets 3,014 5,224 Current liabilities 2,911 2,800 Long-term debt 2,795 3,123 Short-term debt 10 8 Total liabilities 6,827 6,805 Interest expense 153 156 Capital expenditures 1,082 861 Equity 871 2,440 Cash from operations 2,451 1,220 Earnings before interest and taxes 1,101 1,323...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,0...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,000 Accounts receivable 235,008 185,006 Inventory Total current assets $ 825,000 565,000 1,748,901,600,e89 $2,565,0e0 $2,165,0e0 Long-lived assets Total assets Current liabilities 275,000 900,000 990,00 320,000 900,000 1,345,009 Long-term debt Shareholders' equity $2,565,000 $2,165,000 Total debt and equity Income Statement For the years ended December 31 2019 2018 $3,600,000 $3,700,000 2,700,000 2,800,000 900,000...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
Ratios Analyzing Long-Term Firm Solvency The following information is available for Banner Company: Annual Data 2019 2018 Interest expense $85,000 $82,000 203,500 185,000 Income tax expense Net income 496,500 425,000 Capital expenditures 320,000 380,000 Cash provided by operating activities 450,000 390,000 Year-End Data Dec. 31, 2019 Dec. 31, 2018 Total liabilities $2,400,000 $1,900,000 Total stockholders equity 4,200,000 3,800,000 Calculate the following: Note: Round all answers to two decimal places. a. 2019 debt-to-equity ratio. b. 2019 times-interest-earned ratio. 0 c. 2019...
.04 Eİ48A. Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data 2016 2015 . . . . 496,500 400,000 320,000 380,000 425,000 390,000 Cash provided by operating activities . . . . . . Year-End Data Dec. 31, 2016 Dec. 31, 2015 000 3,800,000 Calculate the following: a. 2016 debt-to-equity ratio b. 2016 times-interest-earned ratio c. 2016 operating-cash-flow-to-capital-expenditures ratio
Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Starbucks for 2018 and 2017 follows. ($ millions) Cash 2018 2017 $ 8,756.3 $2,462.3 181.5 228.6 Short-term investments Accounts receivable 693.1 870.4 Current assets 12,494.2 5,283.4 5,684.2 4,220.7 349.9 Current liabilities Short-term debt Long-term debt Total liabilities Interest expense Capital expenditures Equity Cash from operations Earnings before interest and taxes 9,090.2 3,932.6 22,980.6 8,908.6 170.3 92.5 1,976.4 1,519.4 1,175.8 5,457.0 11,937.8 4,251.8 3,883.3 4,134.7...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Nordstrom, Inc. for 2016 and 2015 follows. ole ($ millions) 2016 2015 Cash $ 595 $ 827 Accounts receivable 196 2,306 Current assets 3,014 5,224 Current liabilities 2,911 2,800 Long-term debt 2,795 3,123 Short-term debt 10 8 Total liabilities 6,827 6,805 Interest expense 153 156 Capital expenditures 1,082 861 Equity 871 2,440 Cash from operations 2,451 1,220 Earnings before interest and taxes 1,101 1,323...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,000 Accounts receivable 235,008 185,006 Inventory Total current assets $ 825,000 565,000 1,748,901,600,e89 $2,565,0e0 $2,165,0e0 Long-lived assets Total assets Current liabilities 275,000 900,000 990,00 320,000 900,000 1,345,009 Long-term debt Shareholders' equity $2,565,000 $2,165,000 Total debt and equity Income Statement For the years ended December 31 2019 2018 $3,600,000 $3,700,000 2,700,000 2,800,000 900,000...
Most questions answered within 3 hours.
-
Calculate the change in the Gibbs energy of the system for the
following processes: a) 6.0...
asked 4 minutes ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 13 minutes ago -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 15 minutes ago -
After reading the Primary Care scenario in the Allied Health
Community, what could have been implemented...
asked 8 minutes ago -
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 11 minutes ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 15 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 14 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 15 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 22 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 33 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 53 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 1 hour ago