(1) Compute debt-to-equity ratio for the current year and one year ago.Current Year1 Year AgoDebt-To-Equity RatioChoose Numerator: / Choose Denominator:/11==Debt-to-equity ratio0 to 10 to 1 Required information[The following information applies to the questions displayed below.)Income statements for the current year and one year ago, follow. Assume that all sales are on credit.For Year Ended December 31SalesCost of goods sold.Other operating expensesInterest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per share.Year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netInventoryPrepaid rentMachinery, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stockRetained earningsTotal liabilities and equityCurrent Year$ 121,75692,867162,500121,838$ 498,961$ 395,676201,08111,0278,432$ 648,649Current Year 1 Year Ago 2 Years Ago$ 33,72335, 135$ 28,85087,882107,27759,01546,37880,37149,3889,2149,196265,7563,943220,056247,816$ 498,961$430,139$ 354,900$ 74,147101,900162,50091,592$430,139616,216$ 32,433$ 2.00$ 45,91076,080162,50070,410$ 354,9001 Year Ago$ 332,712129,50211,7737,678$511,865481,665$ 30,200$ 1.86

Debt to equity ratio is calculated by dividing total liabilities by total stockholders' equity.…

Answered: (1) Compute debt-to-equity ratio for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Finance Question
Wilmington Corporation's liabilities to equity ratio in Year 7 ? Wilmington Corporation's total debt to equity ratio in Year 7? Wilmington Corporation's times interest earned ratio in Year 7 ? Wilmington Corporation's cash flow from operations to total debt ratio in Year 7?
vvk.3
I need help to determine the following; 4. For P & B Manufacturing to assess its debt management I need help to calculate the debt-to-equity ratio at the end of the year AND the equity multiplier. Include calculations and round answers to 2 decimal places.
In the following balance sheet, estimate the impact on the economic value of equity (EVE). If interest rates of assets fall by 1% and deposit rates increase by 1%. EVE=$()
Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add exactly due to rounding Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total long-term assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other RUNDLE COMPANY Vertical Analysis of Balance Sheets Year 4 Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating; 6,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities & stockholders' equity Amount $ 16,900 21,000 55,100…
If current assets are 112,000 and current liabilities are 56,000.00 what is the current ratio?
RATIO 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.…
Make comments on this table

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

(1) Compute debt-to-equity ratio for the current year and one year ago. Current Year 1 Year Ago Debt-To-Equity Ratio Choose Numerator: /Choose Denominator: / 1 1 = = Debt-to-equity ratio 0 to 1 0 to 1