Homework Answers
| a. | ||
| Interest coverage ratio = Income before interest and taxes / Interest expense = 59900 / 8300 | 7.22 | times |
| b. | ||
| Fixed charge coverage ratio = ( Income before interest and taxes + Lease expense ) / ( Lease expense + Interest expense ) = ( 59900 + 13300 ) / ( 13300 + 8300 ) | 3.39 | times |
| c. | ||
| Profit margin ratio = Earnings after taxes / Sales = 30960 / 291000 | 10.64% | |
| d. | ||
| Total asset turnover ratio = Sales / Total assets = 291000 / 236000 | 1.23 | times |
| e. | ||
| Return on assets (Investment) = Earnings after taxes / Total assets = 30960 / 236000 | 13.12% |
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Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. $266,000 161,000 $105,000 46,400 13,300 $ 45,300 7,300 $ 38,000 15, 200 $ 22,800 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit Interest expense Earnings before taxes Taxes (30%) Earnings after taxes "Equals income before interest and taxes $235,000 121,000 $114,000 47,500 15,000 51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes $ 220,000 131,000 $ 89,000 44,500 14,200 $ 30,300 10,400 $ 19,900 7,960 $ 11,940 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit Interest expense Earnings before taxes Taxes (30%) Earnings after taxes "Equals income before interest and taxes $235,000 121,000 $114,000 47,500 15,000 $51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interes coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit Interest expense Earnings before taxes Taxes (30%) $221,000 113,000 $108,000 43,700 11,900 52,400 7,100 45,300 18,120 $27,180 Earnings after taxes Equals income befor re interest and taxes a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. $ 235,000 121,000 $114,000 47,500 15,000 $51,500e 6,900 $44,600 17,840 $26,760 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b. Compute the...
The total assets for this company equal $182,000. Set up the equation for the Du Pont...
The total assets for this company equal $182,000. Set up the
equation for the Du Pont system of ratio
analysis.
c. Compute the profit margin ratio. (Input
your answer as a percent rounded to 2 decimal
places.)
d. Compute the total asset turnover ratio.
(Round your answer to 2 decimal places.)
e. Compute the return on assets (investment).
(Do not round intermediate calculations. Input your answer
as a percent rounded to 2 decimal places.)
Using the income statement for Times...
Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter SNIDER CO...
Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter SNIDER CORPORATION Balance Sheet December 31, 20X1 Assets Current assets Cash Marketable securitie $ 51,800 24,200 Accounts receivable (net Inventory Total current assets 174,000 227,000 $ 477,000 63,500 Investments Plant and equipment Less: Accumulated depreciation Net plant and equipment $646,000 246,000 400,000 $ 940,500 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Notes payable Accrued taxes $ 91,100 73,400 18,400 Total...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647...
Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet, income statement and cash flow statement...
Compute and Interpret Liquidity and Solvency Ratios Selected balance sheet, income statement and cash flow statement information from Tesla, Inc. for 2017 and 2016 follows ($ thousands). December 31 2017 2016 Cash and cash equivalents $4,145,691 $4,170,993 Restricted cash 160,989 111,185 Net receivables 515,381 499,142 Inventory 2,263,537 2,067,454 Other current assets 268,365 194,465 Current assets 7,353,963 7,043,239 Current liabilities 7,674,670 5,827,005 Total liabilities 23,022,980 16,750,167 Stockholders' equity 6,410,169 6,691,686 Year ended December 31, 2017 Loss before income taxes $(2,209,032) Interest...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. $266,000 161,000 $105,000 46,400 13,300 $ 45,300 7,300 $ 38,000 15, 200 $ 22,800 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit Interest expense Earnings before taxes Taxes (30%) Earnings after taxes "Equals income before interest and taxes $235,000 121,000 $114,000 47,500 15,000 51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes $ 220,000 131,000 $ 89,000 44,500 14,200 $ 30,300 10,400 $ 19,900 7,960 $ 11,940 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit Interest expense Earnings before taxes Taxes (30%) Earnings after taxes "Equals income before interest and taxes $235,000 121,000 $114,000 47,500 15,000 $51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interes coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit Interest expense Earnings before taxes Taxes (30%) $221,000 113,000 $108,000 43,700 11,900 52,400 7,100 45,300 18,120 $27,180 Earnings after taxes Equals income befor re interest and taxes a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. $ 235,000 121,000 $114,000 47,500 15,000 $51,500e 6,900 $44,600 17,840 $26,760 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b. Compute the...
The total assets for this company equal $182,000. Set up the
equation for the Du Pont system of ratio
analysis.
c. Compute the profit margin ratio. (Input
your answer as a percent rounded to 2 decimal
places.)
d. Compute the total asset turnover ratio.
(Round your answer to 2 decimal places.)
e. Compute the return on assets (investment).
(Do not round intermediate calculations. Input your answer
as a percent rounded to 2 decimal places.)
Using the income statement for Times...
Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter SNIDER CORPORATION Balance Sheet December 31, 20X1 Assets Current assets Cash Marketable securitie $ 51,800 24,200 Accounts receivable (net Inventory Total current assets 174,000 227,000 $ 477,000 63,500 Investments Plant and equipment Less: Accumulated depreciation Net plant and equipment $646,000 246,000 400,000 $ 940,500 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Notes payable Accrued taxes $ 91,100 73,400 18,400 Total...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647...
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