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Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) a. Debt ratio b. Debt-to-equity ratio c. Times interest earned ratio % times

Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) a. Debt ratio b. Debt-to-equity ratio c. Times interest earned ratio % times

FINANCIAL ACCOUNTING
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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Carla Vista Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Cash Carla Vista Medical Comparative Balance Sheet As of December 31 Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets 2020 $395,000 1,054,000 728,000 $417,400 776,500 681,100 247,100 2,558,300 2,122,100 8,662,070 8,439,780 $11,220,370 $10,561,880 381,300 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity 4,357,770 Total liabilities and stockholders' equity $11,220,370 $3,160,000 3,702,600 6,862,600 59,000 104.650 2019 4,194,120 $2,846,000 3,892,700 6,738,700 58,900 103,850 3,660,430 3,823,180 $10,561,880
Transcribed Image Text:Carla Vista Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Cash Carla Vista Medical Comparative Balance Sheet As of December 31 Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets 2020 $395,000 1,054,000 728,000 $417,400 776,500 681,100 247,100 2,558,300 2,122,100 8,662,070 8,439,780 $11,220,370 $10,561,880 381,300 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity 4,357,770 Total liabilities and stockholders' equity $11,220,370 $3,160,000 3,702,600 6,862,600 59,000 104.650 2019 4,194,120 $2,846,000 3,892,700 6,738,700 58,900 103,850 3,660,430 3,823,180 $10,561,880
Carla Vista Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year a. Debt ratio b. Debt-to-equity ratio C. 2020 Times interest earned ratio $10,177,300 5,613,000 4,564,300 2,840,200 1,724,100 300,400 1,423,700 427,110 $996,590 29,550 433,350 462,900 533.690 3,660,430 $4,194,120 2019 $9,613,900 5,298,700 4,315,200 2,634,200 1,681,000 308,600 1,372,400 411,720 $960,680 29,550 413,000 Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) 442,550 518,130 3,142,300 $3,660,430 % times
Transcribed Image Text:Carla Vista Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year a. Debt ratio b. Debt-to-equity ratio C. 2020 Times interest earned ratio $10,177,300 5,613,000 4,564,300 2,840,200 1,724,100 300,400 1,423,700 427,110 $996,590 29,550 433,350 462,900 533.690 3,660,430 $4,194,120 2019 $9,613,900 5,298,700 4,315,200 2,634,200 1,681,000 308,600 1,372,400 411,720 $960,680 29,550 413,000 Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) 442,550 518,130 3,142,300 $3,660,430 % times
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