Question 1
Ratio of Liabilities to Stockholders Equity = Total Liabilities / Stockholders Equity
Total Liabilities = Account Payables + Current maturities of Serial Bonds Payable + 10% Serial Bonds Payable
Total Stockholders Equity = Common Stock + Paid in Capital in excess of Par + Retained Earnings
For Current Year
Total Liabilities = $ 24,42,000
Total Equity= $ 40,70,000
Liabilities to Stockholders Equity = 24,42,000 / 40,70,000
Liabilities to Stockholders Equity = 0.60 : 1
For Previous Year
Total Liabilities = $ 24,22,000
Total Equity = $ 34,60,000
Liabilities to Stockholders Equity = 24,22,000 / 34,60,000
Liabilities to Stockholders Equity = 0.70 : 1
Question 2
Times Interest Earned = Earnings before Interest and Tax / Interest Expense
Earnings before Interest and Tax = Income before Tax + Interest Expense
For Current Year
Interest Expense = (Current Maturities of Serial Bonds Payable + Serial Bonds Payable) * 10%
Interest Expense = (370,000 + 15,20,000) * 10%
Interest Expense = $ 189,000
Earnings before Interest and Tax = 774,900 + 189,000 = $ 963,900
Times Interest Earned = 963,900 / 189,000
Times Interest Earned = 5.1 Times
For Previous Year
Interest Expense = (Current Maturities of Serial Bonds Payable + Serial Bonds Payable) * 10%
Interest Expense = (370,000 + 18,90,000) * 10%
Interest Expense = $ 226,000
Earnings before Interest and Tax = 678,000 + 226,000 = $ 904,000
Times Interest Earned = 904,000 / 226,000
Times Interest Earned = 4 Times
Question 3
A) Decreased
B) Increased
C) Higher Income before Taxes
D) Lower Interest Expense
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $340,000 $101,000 Current maturities of serial bonds payable 230,000 230,000 Serial bonds payable, 10% 930,000 1,160,000 Common stock, $1 par value 50,000 70,000 Paid-in capital in excess of par 550,000 550,000 Retained earnings 1,900,000 1,510,000 The income before income tax was $359,600 and...
Book Calculator Ratio of Liabilities to Stockholders' Equity and Times Interest Eamed The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $196,000 $164,000 Current maturities of serial bonds payable 260,000 260,000 Serial bonds payable, 10% 1,260,000 1,520,000 Common stock, $1 par value 60,000 70,000 Pald-in capital in excess of par 630,000 630,000 Retained earnings 2,170,000 1,730,000 The income before income tax expense was $380,000...
8. Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $150,000 $235,000 Current maturities of serial bonds payable 310,000 310,000 Serial bonds payable, 10% 1,630,000 1,940,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 920,000 920,000 Retained earnings 3,180,000 2,520,000 The income before income tax was $679,000...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $204,000 $180,000 Current maturities of serial bonds payable 260,000 260,000 Serial bonds payable, 10% 1,300,000 1,560,000 Common stock, $1 par value 60,000 70,000 Paid-in capital in excess of par 650,000 650,000 Retained earnings 2,230,000 1,780,000 The income before income tax was $483,600 and...
eBook Calculator Ratio of abilities to Stockholders' Equity and Times Interest Eamed The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $924,000 $800,000 Current maturities of serial bonds payable 200,000 200,000 Serial bonds payable, 10% 1,000,000 Common stock, $10 par value 250,000 250,000 Pald-in capital in excess of par 1,250,000 1,250,000 Retained earnings 860,000 500,000 The income before income tax was $480,000 and $420,000...
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Starr Construction Inc. for December 31, 2016 and 2015: Dec. 31, 2016 Dec 31, 2045 Accounts payable and other liabilities $190,000 $191,000 Current maturities of bonds payable 270,000 280,000 Serial bonds payable, 10%, issued 2008, due in five years 1,320,000 1,650,000 Common stock, $5 par value 140,000 90,000 Paid-in capital in excess of par 1,070,000 790,000 Retained earnings 2,350,000 2,150,000...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges Earned The following data were taken from the financial statements of Weal Construction, Inc. for December 31, 2016 and 20Y5: Dec. 31, 2016 Accounts payable and other liabilities $146,000 Current maturities of bonds payable 190,000 Dec. 31, 2045 $128,000 190,000 1,150,000 110,000 Serial bonds payable, 10%, issued 2008, due in five years 960,000 Common stock, $5 par value 170,000 Paid-in capital in excess of par 950,000 1,300,000 2,850,000...
1) the times interest earned ratio 2) the debt to equity ratio 3) the gross margin percentage 4) the return on total assets (total assets at the beginning of last hear were 13,070,000) 5) the return on equity(stockholders equity at the beginning of last year totaled 7,990,250) no change in common stock over two years 6) ks the companys financial leverage positive ir negative? $ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
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