At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: 2018 $ 68,000 42,160 Total Assets Total Liabilities Interest Expense Income Tax Expense. Net Incone 2019 $70,000 46,200 736 155 780 750 60 6,275 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018?

At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: 2018 $ 68,000 42,160 Total Assets Total Liabilities Interest Expense Income Tax Expense. Net Incone 2019 $70,000 46,200 736 155 780 750 60 6,275 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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X Company collected P12,350 in interest during 2019. X showed P1,850 in interest on its December 31, 2021 statement of financial position and P5,300 on December 31, 2020. How much is the Interest Revenue to be reported on X’s statement of comprehensive income in 2021?
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