Data from the financial statements of Beautiful Candle Company included the following: Average total assets - $60,000 Average common stockholders' equity - $25,000 Net sales - $120,000 Net income $6,000 The company had no preferred stock. Calculate the leverage ratio.

Data from the financial statements of Beautiful Candle Company included the following: Average total assets - $60,000 Average common stockholders' equity - $25,000 Net sales - $120,000 Net income $6,000 The company had no preferred stock. Calculate the leverage ratio.

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 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Related questions

Q: What was her capital gains yield?

A: ImageExplanation.To determine Maria's Capital Gains Yield (CGY), we use the formula:CGY=(Selling…

Q: What is firm's sustainable growth rate?

A: Shareholder's Equity = Total Assets - Total LiabilitiesShareholder's Equity = 1,050 million - 610…

Q: Subject= General Account

A: 1. Calculate the Expected Dividend (D1)The company just paid a $2 dividend (D0).The dividend is…

Q: Please solve this problem

A: Step 1: Define Sales ReturnOne of the deductions from the sales revenue is the sales return because…

Q: Disbursements for manufacturing overhead on the manufacturing overhead

A: Explanation of Cash Disbursement for Manufacturing Overhead:Cash disbursement for manufacturing…

Q: Total manufacturing costs

A: Explanation of Direct Materials Used:Direct materials used refer to the raw materials that are…

Q: No AI ANSWER

A: Concept of Beginning Materials InventoryBeginning materials inventory refers to the total raw…

Q: General accounting

A: Step 1: Define Net IncomeIn business and finance, the primary goal of conducting business is to…

Q: Please give answer the financial accounting question

A: Step 1: Define Freight-InFreight-In refers to the shipping and transportation costs incurred by a…

Q: do fast answer of this General accounting question

A: Step 1: Define Amortization is the process of spreading the cost of an intangible asset over its…

Q: Hello tutor please help me this question solution

A: Step 1: Define Cost-Volume-Profit (CVP) AnalysisThe CVP analysis is handy in figuring out the costs…

Q: Calculate the sales revenue

A: Step 1: Definition of Target Profit and Sales RevenueTarget profit is the expected profit a business…

Q: Need help this question general accounting

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is the estimated…

Q: Subject: financial accounting

A: Explanation of Return on Equity (ROE): Return on Equity is a financial ratio that measures how…

Q: Accounting 12

A: Concept of AssetsAssets refer to the economic resources owned or controlled by a company that have…

Q: [The following information applies to the questions displayed below.] Raleigh Department Store uses…

A: Identify Inventory Layers and Apply Cost-to-Retail PercentagesStep 1:Calculate the Ending Inventory…

Q: Creston Alloy Works manufactures a single product that sells for $90 per unit. Variable costs are…

A: Explanation of Sales Revenue:Sales revenue is the total income generated from selling goods or…

Q: Determine the absorption costing operating income for 2018

A: Explanation of Absorption Costing:Absorption costing is a costing method that includes all…

Q: General Account

A: The correct answer is (d) leisure time is not accounted for in GDP because GDP measures the total…

Q: please provide correct answer General accounting

A: Step 1: Analysis of information givenInitial purchase price per share = $75Final price per share =…

Q: A copy machine cost $78,000 when new and has accumulated depreciation of $72,000. Suppose Print and…

A: Step 1: Calculation of book valueBook value = Original Cost - Accumulated depreciationBook value =…

Q: Please provide solution this financial accounting question

A: Purchase price = $500,000Fair value of net assets = $420,000Book value of net assets = $350,000Tax…

Q: Please provide answer this financial accounting question

A: Step 1: Define Deferred Tax Liability (DTL)A Deferred Tax Liability (DTL) arises when taxable income…

Q: Retirement Portfolio Mutual Fund Type Net Asset Value Shares Total Value…

A: The provided solution analyzes a retirement portfolio by categorizing mutual funds based on their…

Q: L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in…

A: Instead of outsourcing manufacturing, which frequently results in high backorder levels, L.L. Bean…

Q: What is the profit margin of this financial accounting question?

A: Step 1: Define Profit MarginProfit Margin is a financial ratio that measures the percentage of…

Q: Stereotypes are often depicted in films. Choose any film that portrays some form of stereotypes. In…

A: How I addressed each question step by step referencing the article found in the internet as source,…

Q: Compute the number of day's sales in accounts receivable?

A: Step 1: Calculation of average accounts receivablesStep 2: Calculation of number of days sales' in…

Q: What is it's after tax profit margin on these financial accounting question?

A: Step 1: Define After-Tax Profit MarginThe after-tax profit margin is a financial metric that…

Q: Hiii tutor give me Answer

A: To get the number of units that have to be sold to achieve the target profit, the following steps…

Q: Do fast answer of this accounting questions

A: Step 1:First, calculate the contribution margin per meal: Contribution margin per meal = Selling…

Q: Net loss for the year?

A: Explanation of Net Loss:Net loss occurs when a company's total expenses exceed its total revenue for…

Q: give this answer

A: Step 1: Definition of the High-Low MethodThe High-Low Method is used to separate mixed costs into…

Q: A company had $5 million in sales, $3 million in cost of goods sold, and $1 million in selling and…

A: Step 1: Definition of Gross Profit Margin PercentageGross Profit Margin Percentage is a financial…

Q: Problem related general Accounting

A: Debt-Equity Ratio: This ratio measures the proportion of debt relative to equity. It is calculated…

Q: Alam Store recorded the following: cash sales $52,000, credit sales $78,000, sales return $6,000,…

A: Concept of Total SalesTotal sales refer to the sum of all sales transactions made by a business,…

Q: General accounting

A: Step 1: Define Balance SheetA balance sheet is one of the financial statements in a business. It…

Q: Determine the direct labor cost budget for 2015 on these general accounting question?

A: Step 1: Define Direct Labor Cost BudgetThe direct labor cost budget estimates the total wages paid…

Q: Can you please solve this

A: Step 1: Definition of Days Sales in Receivables (DSO)The Days Sales in Receivables (DSO) is an…

Q: What was the firm's net income?

A: Explanation of Net Income:Net income is the final profit a company earns after subtracting all…

Q: How many units must be sold yield a profit of 50000?

A: Explanation of Contribution Margin:Contribution margin represents the amount remaining from sales…

Q: What is the balance in the cash account at the end of the month?

A: Explanation of Cash Account Balance:The cash account is a fundamental ledger account that records…

Q: What is the receivable turnover ratio?

A: Detailed explanation:Given:Total Sales $ 2150Accounts Receivable $ 525 Question: What is the…

Q: Crestwood Industries mixes together sugarcane residue and ethanol. After joint manufacturing costs…

A: Explanation of Net Increase (Decrease) in Operating Income:Net increase (decrease) in operating…

Q: final answer general accounting

A: Step 1: Definition of Return on EquityReturn on equity is a yardstick that measures the magnitude of…

Q: Calculate the inventory turnover ratio of this financial accounting question

A: Step 1: Define Inventory Turnover RatioThe Inventory Turnover Ratio measures how efficiently a…

Q: Hi expert please give me answer general accounting

A: Step 1: Formula Number of units completed = Beginning units + Additional units - Ending units Step…

Q: Partnership interest?

A: Explanation for a: In the given case, Cosmo contributed land with a fair market value of $365,000…

Q: What is the total net gain or loss on this transaction? Accounting

A: Step 1: Definition of GainA gain is the increase in the value of an asset or investment compared to…

Q: The company's net operating income is?

A: Explanation of Net Operating Income (NOI):Net Operating Income (NOI) is the profit a company earns…

Question

Provide true answer financial accounting

Data from the financial statements of Beautiful
Candle Company included the following: Average
total assets - $60,000
Average common stockholders' equity - $25,000
Net sales - $120,000
Net income
$6,000
The company had no preferred stock.
Calculate the leverage ratio.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The following information pertains to Sunland Company. Assume that all balance sheet amounts represent average balance figures. Total assets Stockholders' equity-common Total stockholders' equity Sales revenue Net income Number of shares of common stock Common dividends Preferred dividends What is Sunland's payout ratio? O 24.6%. O 9.6%. O 17.9%. O 37.9%. $355000 235000 294000 97000 21100 6000 5200 8500
What is the price earnings ratio on these financial accounting question?
The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.Total assets$300,000Stockholders' equity—common150,000Total stockholders' equity200,000Sales revenue100,000Net income25,000Number of shares of common stock6,000Common dividends5,000Preferred dividends7,000What is the return on common stockholders' equity ratio for Benedict?
The following information pertains to Windsor Company. Assume that all balance sheet amounts represent average balance figures. Total assets $330000 Stockholders' equity-common 210,000 Total stockholders' equity 298,000 Sales revenue 110,000 Net income 20,600 Number of shares of common stock 7,500 Common dividends 4,700 Preferred dividends 8,300 What is Windsor's payout ratio? a. 8%. b. 22.82%. c. 16%. d. 36%.
The following information pertains to the Bramble Company. Assume that all balance sheet amounts represent average balance figures. Total assets $360,000 Stockholders' equity-common 240,000 Total stockholders' equity 290,000 Sales revenue 94,000 Net income 21,200 Number of shares of common stock 6,000 Common dividends 5,300 Preferred dividends 8,500 What is Bramble's payout ratio? A. 10%. B. 38%. C. 25%. D. 18%.
Following is the financial statements data for XYZ Corporation: XYZ Corp. Total Assets $23,565 Interest-Bearing Debt $12,131 Average borrowing rate for debt Common Equity: 11.7% Market Value $26,887 Marginal Income Tax Rate 35% Market Beta 1.91 Based on the information above, what is the weight on equity capital that you can use to calculate the firm's weighted-average cost of capital (WACC) (Write your answer in percent, omit the "%" sign, and round your answer to two decimal places. For example, if your answer is 0.538, type in 53.80):
Calculate The Market Price with General Accounting method
The following information has been gathered for Malette Manufacturing: Assume that the firm has no common stock equivalents. The tax rate is 34%. Required: 1. Compute the return on assets. 2. Compute the return on common stockholders equity. 3. Compute the earnings per share. 4. Compute the price-earnings ratio. 5. Compute the dividend yield. 6. Compute the dividend payout ratio.
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Stockholder Profitability Ratios The following information pertains to Montague Corporation Required: Calculate the return on common equity and the earnings per share. (Note: Round answers to two decimal places.)
Compute the following profitability measures for Esplanade Enterprises for 20-2: (a) Profit margin ratio (b) Return on assets (ROA) (c) Return on common stockholders equity (ROE) (d) Earnings per share of common stock (EPS)