Please calculate: debt ratio and times interest earned ratio
Q: a. Depreciation on the company's equipment for the year is computed to be $11,000. b. The Prepaid…
A: Adjusting entries are the transactions which are recorded in the books of an entity at the end of a…
Q: The following accounts correspond to the company Hisellav, S.A, which is dedicated to providing…
A:
Q: ABC company produces and selling a single product. The following information relates to their…
A: Direct Material Budget :— A direct materials purchases budget calculates how much material is…
Q: If your cost of goods sold for the year was $825,000, with beginning inventory of $240,000 and…
A: The inventory turnover ratio is a kind of efficiency ratio that indicates the number of times…
Q: Journal entry worksheet 1 2 Date April 02 3 Note: Enter debits before credits. Record entry 4 5…
A: Journal Entry :— It is an act of recording transaction in books of account when it is occured or…
Q: The company rented furnished office space by paying $2,300 cash for the first month's (April) rent.
A: Every business whether small or big requires doing one of the common activities regarding how the…
Q: 3) Prepare a Statement of Retained Earnings for the year ended December 31, 2021
A: Statement of retained earnings is the part of balance sheet. To prepare the statement need the…
Q: During 2020, Stephanie received $16,000 in wages, $3,500 in unemployment benefits, and $500 in…
A: The business income for net operating income (NOI) would include only the income related to the…
Q: Saira works for an accounting firm. Her annual salary is $70,000. She also earned income from rental…
A: Ordinary income is defined as any sort of income generated by a company or person that is taxed at…
Q: Consider how an organization must manage cash and receivables. Which of the two is the most…
A: How an organization must manage cash and receivables? Cash and receivables management is important…
Q: sa's Automotive Company has two support departments, Personnel and Maintenance. The Maintenance…
A: Answer : Maintenance department cost allocation = A and B = 240 :160 A and B = 3:2 Personnel…
Q: Question Content Area Which of the following is not an intangible asset? Deferred tax asset…
A: Intangible assets : Intangible assets are those assets which do not have any physical substance but…
Q: On July 01, 2020, Maria initially invested P200,000 cash into Maria Merchandising. On the same date,…
A: The practice of recording commercial transactions for the first time in the books of accounts is…
Q: please explain last three subparts
A: Cost of goods sold is actual cost of goods that is being sold to the customers. Gross profit is the…
Q: unts) In 2019, Zikani Corp. started using Dollar Value LIFO. At the end of 2019, their base year,…
A: LIFO stands for Last in first out and refers to the method that is used for recording the…
Q: Discuss all the concepts of accounting?
A: Accounting concepts are list of concepts which are require to be used by all kind of business to…
Q: The amounts of the assets and liabilities of Excalibur Travel Agency at December 31, 20Y5, the end…
A: The financial statements of the business include the income statement and balance sheet. The…
Q: Hugh has the choice between investing in a City of Heflin bond at 5.70 percent or investing in a…
A: Bonds Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…
Q: A Merchandising Business purchases products from its vendors for resale to its customers. True or…
A: Merchandising Companies: Retailers and wholesalers are the two types of merchandising organizations…
Q: The month-end journal entry to adjust its cash balance to agree to the adjusted book balance should…
A: Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. In case…
Q: Perteet Corporation's relevant range of activity is 6,900 units to 13,500 units. When it produces…
A: Any expense in manufacturing which are not directly connected to production is called an overhead…
Q: Suppose a business receives a bill for services rendered from one of its suppliers. The business…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. The…
Q: At the beginning of the year, a company estimates total direct materials costs of $1890,000 and…
A: It is given that: Estimated direct material cost - $ 1,890,000 Total overhead cost- $ 2,627,000…
Q: The Molding Department is the second department in Paxton Company production process. The data below…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Complete the following (If more than one discount, assume date of last discount): (Use Table 7.1)…
A: Discount Period - Every company encourages Sales and payment from the customer issue some discount…
Q: ere's the income statement from a small company for Q2 2022 (dollar values in thousands of dollars):…
A: A profit and loss statement is a written statement that shows an organization's revenue, expenses,…
Q: Plese do the exercise: By the end of December 2021, Greta Thunberg, chief accountant of Silence is…
A: Closing Entries Closing entries are journal entries that move temporary account balances into…
Q: P3.1.8 COA Debits and Crazy The following accounts are from the Mookie the Beagle concierge…
A: Debits A debit is an accounting entry that either enhances or decreases the value of an asset or…
Q: Which of the following is business income for NOL purposes? Interest earned on savings account.…
A: If your deductions for the year are more than your income for the year, you may have a net operating…
Q: ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from…
A: To calculate total revenue we have to make adjustment in amount collected from clients for changes…
Q: QUESTION 1 Josephine Brain is going to open her fashion store. Comparing the pros and cons of…
A: Companies, individuals, and firms can buy from other businesses. Before buying a business, they…
Q: investing in a city bond at 5.70 percent or investing in a surething incorporated bond at 9.25…
A: Step 2in solve the question.
Q: Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and…
A: Disclaimer: As per instruction of question we have to solve question 2 Activity-based costing…
Q: 31 May =.6 Write up the asset and liability and capital accounts to record the following…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: 4. Selwyn's Service applied overhead on the basis of direct labor costs during the current year.…
A: Journal Entry is the primary step to record the transaction in the books of account. Applied…
Q: The 2018 balance sheet of Dido Daffodil Depot, Inc., showed long-term debt of $2.9 million, and the…
A: Cash Flow From Operating Activities :— Cash Flow From Operating Activities are the Principal Revenue…
Q: Do income exclusions provide taxpayers “tangible” benefits Is the IRS appearing to be socially…
A: Net Income The net earnings a corporation receives from its business operations are known as net…
Q: The following cost data relate to the manufacturing activities of Chang Company during the just…
A: Over Applied and Under Applied of Manufacturing OH :— Under applied overhead is the opposite of…
Q: At the end of 2022, Shah Corp. underestimated its annual bad debts expense by $50,000. What is the…
A: In order to increase the sales revenue, the business entities sold their goods on the credit basis.…
Q: Customer life-cycle costs: Select one: a. Are the replacement costs of using a product or service.…
A: Cost Accounting system A perpetual inventory accounting system, the cost accounting system is…
Q: Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate…
A: Costs refers to the amount that is spent to generate revenue for the business. There are different…
Q: Your bank has quoted you a nominal interest rate of 17%. Your loan will be compounded quarterly.…
A: Effective interest rate is the actual rate of return in an investment after considering the effect…
Q: Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period…
A: Adjusting Entries - Adjusting Entries are required to adjust the expenses and income paid early or…
Q: Please provide correct answers. Its wrong. figured out #3 Please helpo wi
A: Journal entries are those entries that include daily transactions or events and are stated in the…
Q: Question 28 Hewett Electronics manufactures amplified pressure transducers. It must decide between…
A: calculation of variable speed and dual speed are as follows
Q: Pandora Hardwood Products uses standard costs in a process cost system. At the end of the current…
A: A budget is a tool to predetermine estimated revenue and estimated expenses. Every organization…
Q: Based on your understanding and interpretation of current assets, and the operating cycle, provide 5…
A: The operating cycle represents the process of a block of money on the purchase of materials,…
Q: Accounting How do the qualitative characteristics apply to accounting standard setting, standards’…
A: Answer:- Accounting meaning:- The act of recording a business's financial transactions is generally…
Q: LO.2, 5 The Bluejay Apartments, a new development, is in the process of structuring its lease…
A: An contractual agreement allowing usage of an asset by one party (lessor) by another party holding…
Q: Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis…
A: Disclaimer; Since you have asked many question as per bartleby gidelines we have to solve only 3…
All the figures are in millions.
Please calculate: debt ratio and times interest earned ratio
Please written down the formulas used and use excel.
|
BKW |
Current Asset |
Current Liabilities |
Total Liabilities |
Total Assets |
|
2016 |
344,168 |
145,498 |
678,726 |
2,517,211 |
|
2017 |
356,979 |
160,215 |
752,063 |
2,719,903 |
|
2018 |
368,473 |
177,655 |
804,059 |
2,875,137 |
|
2019 |
495,024 |
261,798 |
925,626 |
3,092,984 |
|
2020 |
637,416 |
232,882 |
1,428,922 |
3,832,933 |
|
2021 |
579,863 |
268,282 |
1,546,085 |
4,025,832 |
|
BKW |
Net Cash Provided by operating activities |
Operating Income Before Tax |
Finance Costs |
Cash and cash eqiv & |
|
2016 |
148,507 |
121,756 |
- 14,080 |
19,641 + 133,225 |
|
2017 |
115,422 |
256,583 |
- 12,436 |
19,641 + 133,225 |
|
2018 |
170,948 |
244,453 |
- 14,456 |
21,167 + 122,216 |
|
2019 |
123,080 |
314,475 |
- 23,883 |
74,881 + 133,319 |
|
2020 |
75,259 |
417,117 |
- 26,452 |
187,109 & 129,024 |
|
2021 |
139,795 |
347,363 |
- 22,095 |
139,825 & 132,447 |
Step by step
Solved in 2 steps
- Find the following using the data bellow Accounts receivable = 111,100,000 Current assets = 316,500,000 Total assets = 600,000,000 A. Return on assets B. Common equity C .Quick rationeed the calculation for debt to assets ratio, debt equity ratio, long-term debt to equity and times interest earned ratio. CURRENT ASSETS Cash and cash equivalents $ 5,910 $ 5,238 Marketable securities 406 503 Accounts receivable 10,888 9,645 Less: Allowance for credit losses (138) (93) Accounts receivable, net 10,750 9,552 Assets held for sale 1,197 0 Other current assets 1,953 1,810 Total Current Assets 20,216 17,103 Property, Plant and Equipment, Net 32,254 30,482 Operating Lease, Right-of-Use Asset 3,073 2,856 Goodwill 3,367 3,813 Intangible Assets, Net 2,274 2,167 Investments and Restricted Cash 25 24 Deferred Income Tax Assets 527 330 Other Non-Current Assets 672 1,082 Total Assets 62,408 57,857 Current Liabilities: Current maturities of long-term debt, commercial paper and finance leases 2,623 3,420 Operating Lease, Liability, Current 560 538 Accounts payable 6,455 5,555 Accrued wages and withholdings 3,569 2,552…Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 245 Current liabilities Long-term debt 630 Other liabilities Equity $ 875 Required: a. What is the company's debt-equity ratio? (Hint: debt = Current liabilities, Long-term debt, and Other liabilities) Note: Round your answer to 2 decimal places. b. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. c. What is its net working capital? d. What is its current ratio? Note: Round your answer to 2 decimal places. $ 170 215 140 350 $ 875 a Debt-equity ratio b. Long-term debt-to-capital ratio c. Net working capital d. Current ratio
- Assume the following information is given:Income statementNet sales sh. 200,000Operating income 10,000 Balance sheetCurrent assets 95,000Total assets 150,000 Current liabilities 80,000Total liabilities 125,000Retained earnings 25,000 The market value of equity is sh. 300,000Required:Evaluate the credit worthiness of the borrower using Altman ZYou are given the following information. What is your liquidity ratio? Annual disposable income: $45,000 Total liabilities: $17,400 Annual savings: $2,400 Long-term assets: $85,000 Current ratio: 2 Debt-to-asset ratio: 0.2 Select one: a. 0.90 b. 0.56 c. 0.89 d. 0.53RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…
- Given the following balance sheet information: Liabilities Current Liabilities Accounts Payable Total Current Liabilities Long Term Liabilities Bank Loan Total Long Term Liabilities $46.684 $46,684 $231.240 $231,240 Owner's Equity: Calculate the Debt/Equity ratio. $540,022Consider this simplified balance sheet for Geomorph Trading: Current assets $ 120 Current liabilities $ 70 Long-term assets 520 Long-term debt 270 Other liabilities 90 Equity 210 $ 640 $ 640 Required: What is the company’s debt-equity ratio? Note: Round your answer to 2 decimal places.compute the following ratios using the Balance Sheet (Current Year) and Income Statement provided in the images below Current Ratio (in numeric format, 2 decimal places): Debt to Equity (in numeric format, 2 decimal places(): Return on Equity (stated as a percentage, 2 decimal places): Return on Assets (stated as a percentage, 2 decimal places):
- Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10-K report dated December 29, 2018 ($ millions). Revenue Interest expense Tax expense Amortization expense Depreciation expense $13,547 Earnings from continuing operations $1,344 Capital expenditures (CAPEX) 578 287 181 Total debt 8,893 23 Average assets 17,066 493 a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/ Interest expense, Debt/EBITDA, CAPEX/Depreciation Expense. Definitions for these ratios are in Exhibit 7.4. b. Refer to Exhibit 7.4 and the ratios you calculated in part a. Estimate the credit rating that Moody's might assign to Kellogg. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%) Ratio Moody's rating EBITA/Avg. assets EBITA margin EBITA/Int. expense Debt/EBITDA CAPEX/Dep. expense Please answer all parts of the question. 0% 0% 0 0 0 ◆ ◆Imagine a balance sheet: Current assets = $105, current liabilities = $100, fixed assets = $340, and %3D the owner's equity = $135. What is the value of long term debt if it is the only other item on the %3D balance sheet? O $210 O $235 O $445 O $105 O $205Exercise n°6. Consider this simplified balance sheet for Geomorph Trading: Current liabilities Long-term debt Other liabilities Equity Current assets $ 100 $ 60 Long-term assets 500 280 70 190 $ 600 $ 600 a. Calculate the ratio of debt to equity. (Round your answer to 2 decimal places.) b-1. What are Geomorph's net working capital and total long- term capital? b-2. Calculate the ratio of debt to total long-term capital. (Round your answer to 2 decimal places.) Exercise n°7. Magic Flutes has total receivables of $3,000, which represent 20 days' sales. Total assets are $75,000. The firm's operating profit margin is 5%. Assume a 365-day year. 3/4 a. What is the firm's sales-to-assets ratio? (Round your answer to 2 decimal places.) b. What is the firm's return on assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Exercise n°8. a. If a firm's assets of $10,000 represent 200 days' sales, what is its annual sales? Assume a 365-day…