Need Answer please provide solution with calculation In 2012 sales revenue was $120 and net income was $12.1/1/12 12/31/12Current Assets$20$24Long-Term Assets$70$86Current Liabilities$8$10Long-Term Liabilities $32$40Equity$50$60Compute the Debt-to-equity ratio in 12/31/12.

Step 1: Define Assets:In assets of the company can be divided into two categories namely current…

Answered: In 2012 sales revenue was $120 and net…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 23MCQ

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For Financial year 2021: Current ratio = Current assets / Current liabilities = 43.133 / 29.613 = 1.46 (2.d.p) Debt-to-equity = Total liabilities / Total equity = (29.613 + 25.382) / 47.069 = 1.17 (2.d.p) Return on total assets = Net profit / Average total assets = (-11.195) / 101.964 = -0.11 (2.d.p) Profit margin ratio = Net profit / Net sales = (-11.195) / 81.79 = -0.14 (2.d.p) Debt-to-asset = Total liabilities / Total assets = (29.613 + 25.382) / 101.964 = 0.54 (2.d.p) Cash flow on total assets = Net cash flow from operating activities / Average total assets = 4.717 / 101.964 = 0.05 (2.d.p) For Financial year 2022: Current ratio = Current assets / Current liabilities = 49.476 / 32.754 = 1.51 (2.d.p) Debt-to-equity = Total liabilities / Total equity = (32.754 + 27.625) / 46.732 = 1.29 (2.d.p) Return on total assets = Net profit / Average total assets = (-0.336) / 107.111 = -0.003 (3.d.p) Profit margin ratio = Net profit / Net sales = (-0.336) / 115.56 = -0.003 (3.d.p) Debt-to-asset…
Given the following details, what is Layla Inc.’s debt ratio?Sales/Total assets - 1.5xReturn on assets - 3%Return on equity - 5%
Given the following details, what is OXFORD Inc.'s debt ratio? Sales/Total assets Return on assets Return on equity 1.5x 3% 5%
Para el año que culmina el 30 de junio de 2018, Northern Air Cooling Corporation tiene: Total assets = $87,631,181 ROA = 11.67 % ROE = 21.19 % Net profit margin = 11.59 % Determina lo siguiente Net income: _____________ Sales: _____________ Debt-to-equity ratio: _____________
When Total Debt/ Total Sources Ratio is 70%,what is Equity / Total Debt Ratio?a)30 %b)233 %C)42,86 % d)167 %
Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income Taxes (34%) Net Income Balance Sheet (2016) Cash Accounts Receivable 1,000 160 Accounts Payable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Stock 300 100 800 800 Retained Eamings 1.000 3.000 Inventory Fixed Assets Total 3.000 Total Dividend (33.33%) Retained Earnings Main assumplions Sales are expected to increase by 25% in 2017. "Cost of goods sold is a fraction of sales in the income statement. All other items are independent of sales. Each current asset and accounts payable are fractions of sales in the balance sheet All other items are independent of sales. If there is a need for external funding: o raise funds through short term debt first, but current ratio must not be smaller than 3. o raise the remaining funds through 50% long-term debt and 50% equity offering (common stock). What is the new cash conversion cycle in year 2017? (Let 1 xr = 360 davs) 1 months 3 months 5 months 7 months
Income Statement (2016) 1.000 (800) Balance Sheet (2016) 160 Accounts Payable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Stock Credit Sales 300 100 800 800 Retained Eamings 1.000 3.000 Cash Accounts Receivable Cost of Goods Sold Taxable Income Taxes (34%) Net Income Inventory Fixed Assets Total 3.000 Total Dividend (33.33%) Retained Earnings Main assumptions Sales are expected to increase by 25% in 2017. "Cost of goods sold is a fraction of sales in the income statement. All other items are independent of sales Each current asset and accounts payable are fractions of sales in the balance sheet. All other items are independent of sales. If there is a need for external funding: o raise funds through short term debt first, but current ratio must not be smaller than 3. o raise the remaining funds through 50% long-term debt and 50% equity offering (common stock). Xouasafinancial.managerare.assianed.to.anplx.nercentage.ot.sales.method.andta. prepare the pro.fomma.income.statementand…
PROBLEM5. Following data represents the ratio pertaining to X Co. Ltd. for the year ending 31st March, 2010 : Annual Sales 7 40,00,000 Sales to Net Worth Current Liabilities to Net Worth Total Debts to Net Worth 4 times 50% 80% Current Ratio 2.2 times Sales to Inventory Average Collection Period Fixed Assets to Net Worth 8 times 40 days 4 4. 70% From the above particulars prepare the Balance Sheet of X Co. Ltd. as on 31st March, 2004. Assume that all sales are made on credit.
Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million. Calculate the Debt Service/ Revenue Ratio. Is the ratio favorable?
Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89
Calculate ‘Total Assets to Debt ratio’ from the following information : Equity Share Capital 4,00,000 Long Term Borrowings 1,80,000 Surplus i.e. Balance in statement of Profit and Loss 1,00,000 General Reserve 70,000 Current Liabilities 30,000 Long Term Provisions 1,20,000
At the beginning of the year, Norwood Pass Industries had $240,000 in total assets and a debt-to-assets ratio of 0.5 or 50%. During the year, Norwood's assets increased by $80,000, and its liabilities increased by $72,000. What is the debt-to-assets ratio at the end of the year? Multiple Choice 0.4 or 40% 0.6 or 60% 1.7 or 170% 0.9 or 90%

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In 2012 sales revenue was $120 and net income was $12. 1/1/12 12/31/12 Current Assets $20 $24 Long-Term Assets $70 $86 Current Liabilities $8 $10 Long-Term Liabilities $32 $40 Equity $50 $60 Compute the Debt-to-equity ratio in 12/31/12.