The following data are for the 2018 fiscal year of Meme-Me Corporation and Sozhal Incorporated. All dollar amounts are in thousands. Account Title Current assets Total assets Current liabilities. Total liabilities Stockholders' equity Interest expense Income tax expense Net income Mene-Me Corporation $135,729 233,370 34,907 55,430 177,940 116 4,195 31,217 Sozhal Incorporated $50,485 97,828 7,068 13,476 84,932 24 3,347 22,804 Required a. Calculate the EBIT for each company. b. Calculate each company's debt-to-assets ratio, current ratio, and the times-interest-earned ratio. c. Calculate each company's return-on-assets ratio using EBIT instead of net earnings. Calculate each company's return-on- equity ratio using net earnings.

The following data are for the 2018 fiscal year of Meme-Me Corporation and Sozhal Incorporated. All dollar amounts are in thousands. Account Title Current assets Total assets Current liabilities. Total liabilities Stockholders' equity Interest expense Income tax expense Net income Mene-Me Corporation $135,729 233,370 34,907 55,430 177,940 116 4,195 31,217 Sozhal Incorporated $50,485 97,828 7,068 13,476 84,932 24 3,347 22,804 Required a. Calculate the EBIT for each company. b. Calculate each company's debt-to-assets ratio, current ratio, and the times-interest-earned ratio. c. Calculate each company's return-on-assets ratio using EBIT instead of net earnings. Calculate each company's return-on- equity ratio using net earnings.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 33BEB: The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as...

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