Deacon Corporation has provided the following financial data from its balance sheet and income statement: Total assets Year 2 $1,298,000 Year 1 $1,232,000 Total liabilities $610,000 $462,100 Total stockholders' equity $734,400 $892,000 Net operating income (income before interest and taxes) $69,903 Interest expense $35,000 The company's debt-to-equity ratio at the end of Year 2 is: a. 0.68 b. 0.63 c. 0.52 d. 0.83

Deacon Corporation has provided the following financial data from its balance sheet and income statement: Total assets Year 2 $1,298,000 Year 1 $1,232,000 Total liabilities $610,000 $462,100 Total stockholders' equity $734,400 $892,000 Net operating income (income before interest and taxes) $69,903 Interest expense $35,000 The company's debt-to-equity ratio at the end of Year 2 is: a. 0.68 b. 0.63 c. 0.52 d. 0.83

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 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...

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Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of 8,125,000, and total assets of 40,625,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of 75,000,000, and total assets of 169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Refer to the following selected financial information from Hansen's, LLC. Comput the company's debt-to-equity ratio for Year 2. Net sales Year 2 $478,500 Year 1 $426,250 Cost of goods sold 276,300 250.120 Interest expense 9,700 10,700 Net income before tax 67.250 52,680 Net income after tax 46,050 39,900 Total assets 317,100 288,000 Total liabilities 181,400 167,300 Total equity 135,700 120,700 О 1) 1.75. 2) 2.34. 3) 0.75. 4) 1.34. 5) 2.63.
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Deacon Corporation has provided the following financial data from its balance sheet and income statement: Total assets Total liabilities Total stockholders' equity Net operating income (income before interest and taxes) Interest expense The company's debt-to-equity ratio at the end of Year 2 is closest to: Multiple Choice O C 0.61 0.42 073 Year 2 $ 1,265,000 $ 532,000 $ 733,000 $ 68,739 $ 25,000 Year 1 $ 1,232,900 $ 460,900 $ 772,000
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Quantum Moving Company has the following data. Industry information also is shown. Company Data Industry Data on Year Net Income Total Assets Net Income/Total Assets 20X1 $ 350,000 $ 2,833,000 10.9 % 20X2 404,000 3,285,000 7.5 % 20X3 451,000 3,756,000 4.5 % Year Debt Total Assets Industry Data onDebt/Total Assets 20X1 $ 1,714,000 $ 2,833,000 55.5 % 20X2 1,777,000 3,285,000 48.0 % 20X3 1,989,000 3,756,000 34.0 % a. Calculate the company's data in terms of (Input your answers as a percent rounded to 1 decimal place.) Net/Total Asset % years 20X1-20X2-20X3 Debt/Total Asset % years