SubAssume at December 31, 2020, Kraft Heinz Foods Inc. reported the following amounts (in millions) in its financial statements:20202019Total Assets$13,100 $11,80010,349Total LiabilitiesInterest ExpenseIncome Tax Expense9,086160160230200Net Income1,010920Required:1. Compute the debt-to-assets ratio and times interest earned ratio for 2020 and 2019. (Round your answers to 2 decimal places.)20202019Debt-to-assets ratioTimes interest earned ratio< Prev13 of 17Next >ENG1:4令包US2022-0 HelpSave & ExitSubm2-a. Using the answers of requirement 1 determine whether, in 2020, creditors were providing a greater (or lesser) proportion offinancing for Kraft's assets?O LesserO Greater2-b. Using the answers of requirement 1 determine whether, in 2020, Kraft was more (or less) successful at covering its interestcosts, as compared to 2019?O MoreO Less< Prev13 of 17Next >1:4ENG令US2022-0%23

Here in this question, we are required to calculate two ratios. Debt to asset ratio showing how much…

Assume at December 31, 2020, Kraft Heinz Foods Inc. reported the following amounts (in millions) in its financial statements: 2020 2019 Total Assets $13,100 $11,800 10,349 Total Liabilities Interest Expense Income Tax Expense 9,086 160 160 230 200 Net Income 1,010 920 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2020 and 2019. (Round your answers to 2 decimal places.) 2020 2019 Debt-to-assets ratio Times interest earned ratio

Assume at December 31, 2020, Kraft Heinz Foods Inc. reported the following amounts (in millions) in its financial statements: 2020 2019 Total Assets $13,100 $11,800 10,349 Total Liabilities Interest Expense Income Tax Expense 9,086 160 160 230 200 Net Income 1,010 920 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2020 and 2019. (Round your answers to 2 decimal places.) 2020 2019 Debt-to-assets ratio Times interest earned ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sub
Assume at December 31, 2020, Kraft Heinz Foods Inc. reported the following amounts (in millions) in its financial statements:
2020
2019
Total Assets
$13,100 $11,800
10,349
Total Liabilities
Interest Expense
Income Tax Expense
9,086
160
160
230
200
Net Income
1,010
920
Required:
1. Compute the debt-to-assets ratio and times interest earned ratio for 2020 and 2019. (Round your answers to 2 decimal places.)
2020
2019
Debt-to-assets ratio
Times interest earned ratio
< Prev
13 of 17
Next >
ENG
1:4
令包
US
2022-0

Help
Save & Exit
Subm
2-a. Using the answers of requirement 1 determine whether, in 2020, creditors were providing a greater (or lesser) proportion of
financing for Kraft's assets?
O Lesser
O Greater
2-b. Using the answers of requirement 1 determine whether, in 2020, Kraft was more (or less) successful at covering its interest
costs, as compared to 2019?
O More
O Less
< Prev
13 of 17
Next >
1:4
ENG
令
US
2022-0
%23

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