Current Attempt in Progress The following financial information relates to Cullumber Ltd. (amounts in thousands): 2022 2023 2024 Income before depreciation, amortization, $7,128 $6,650 $5,992 interest, and taxes Interest expense 360 350 280 Cash 210 290 290 Current liabilities (does not include any debt) 1,110 1,920 2,680 Bank loan payable (all long-term) 5,500 6,060 5,260 Shareholders' equity 6,200 6,400 7,260 (a) Calculate the debt to equity, debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Debt to equity ratio 2022 % 2023 2024 % % do Net debt as a percentage of total capitalization Interest coverage % % do %

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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Current Attempt in Progress
The following financial information relates to Cullumber Ltd. (amounts in thousands):
2022
2023
2024
Income before depreciation, amortization,
$7,128
$6,650
$5,992
interest, and taxes
Interest expense
360
350
280
Cash
210
290
290
Current liabilities (does not include any debt)
1,110
1,920
2,680
Bank loan payable (all long-term)
5,500
6,060
5,260
Shareholders' equity
6,200
6,400
7,260
(a) Calculate the debt to equity, debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal
place, e.g. 18.4 or 15.3%.)
Debt to equity ratio
2022
%
2023
2024
%
%
do
Net debt as a
percentage of total
capitalization
Interest coverage
%
%
do
%
Transcribed Image Text:Current Attempt in Progress The following financial information relates to Cullumber Ltd. (amounts in thousands): 2022 2023 2024 Income before depreciation, amortization, $7,128 $6,650 $5,992 interest, and taxes Interest expense 360 350 280 Cash 210 290 290 Current liabilities (does not include any debt) 1,110 1,920 2,680 Bank loan payable (all long-term) 5,500 6,060 5,260 Shareholders' equity 6,200 6,400 7,260 (a) Calculate the debt to equity, debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Debt to equity ratio 2022 % 2023 2024 % % do Net debt as a percentage of total capitalization Interest coverage % % do %
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