58 A e) f) 8) B C D Calculate the debt to equity ratio for both companies at the end of 2024. Long-term liabilities Less: cash Net debt Debt-to-equity (D/E) = Long-term liabilities. Less: cash Net debt Add: equity Total capitalization UCW Brewery Ltd. 2024 Net debt as a % of total capitalization = $91,900 $103,900 12,000 0.72 Calculate the net debt as a percentage of total capitalization for both companies. $91,900 UCW Brewery Ltd. 2024 $103,900 12,000 51,200 $143,100 64.2% SFU Beer Ltd. 2024 $3,500 E $3,500 $8,000 4,500 0.12 SFU Beer Ltd. 2024 $8000 4,500 17,800 $21,300 16.4% Compare the use of leverage by these companies based on the ratios calculated in parts (e) and (f). G *D/E= * = H Net debt Total sh equity Net debt Total capitaliz'n I J K

58 A e) f) 8) B C D Calculate the debt to equity ratio for both companies at the end of 2024. Long-term liabilities Less: cash Net debt Debt-to-equity (D/E) = Long-term liabilities. Less: cash Net debt Add: equity Total capitalization UCW Brewery Ltd. 2024 Net debt as a % of total capitalization = $91,900 $103,900 12,000 0.72 Calculate the net debt as a percentage of total capitalization for both companies. $91,900 UCW Brewery Ltd. 2024 $103,900 12,000 51,200 $143,100 64.2% SFU Beer Ltd. 2024 $3,500 E $3,500 $8,000 4,500 0.12 SFU Beer Ltd. 2024 $8000 4,500 17,800 $21,300 16.4% Compare the use of leverage by these companies based on the ratios calculated in parts (e) and (f). G D/E= = H Net debt Total sh equity Net debt Total capitaliz'n I J K

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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