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…
Calculate the debt-to-equity ratio. Total asset = $1,500,000 Total debts = $1,200,000 Current liabilities = $600,000
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: _____________
Dollarama reported the following selected data (in millions): 2017 2016 Total assets $1,934.3 $1,863.5 Total liabilities 2,186.7 1,763.1 Profit 519.4 445.6 Income tax expense 196.3 166.8 Interest expense 39.9 33.0 (a) Calculate the debt to total assets and interest coverage ratios for 2017 and 2016. Did Dollarama's solvency improve, worsen, or remain unchanged in 2017? (Round answers to 1 decimal place, eg. 52.2 or 52.2%.) 2017 2016 Debt to total assets Interest coverage times times The Dollarama's solvency
Given the following information, calculate the debt ratio percentage: Liabilities $24,000 Liquid assets $4,400 Monthly credit payments $300 Monthly savings $260 Net worth $72,000 Current liabilities $1,100 Take-home pay $1,800 Gross income $3,000 Monthly expenses $1,540 a) 33.3 b) 4 c) 2.86 O d) 16.67 O e) 8.67
Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10-K report dated December 29, 2018 ($ millions). Revenue Interest expense Tax expense Amortization expense Depreciation expense $13,547 Earnings from continuing operations $1,344 Capital expenditures (CAPEX) 578 287 181 Total debt 8,893 23 Average assets 17,066 493 a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/ Interest expense, Debt/EBITDA, CAPEX/Depreciation Expense. Definitions for these ratios are in Exhibit 7.4. b. Refer to Exhibit 7.4 and the ratios you calculated in part a. Estimate the credit rating that Moody's might assign to Kellogg. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%) Ratio Moody's rating EBITA/Avg. assets EBITA margin EBITA/Int. expense Debt/EBITDA CAPEX/Dep. expense Please answer all parts of the question. 0% 0% 0 0 0 ◆ ◆
Given the following information, calculate the debt ratio percentage: Liabilities = $24,500 Liquid assets = $4,900 Monthly credit payments = $800 Monthly savings = $760 Net worth = $72,500 Current liabilities = $1,600 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $-2,040
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…
Total Debt / EBITDA is 5x as of Mar 2014. Revenues in this period have increased by 20% and EBITDA margins are 20%. D&A is 5% of Revenues for Mar 2014. Debt : Equity ratio as of Mar 2014 is 0.5x. Calculate the Total Asset Turnover ratio for Mar 2014 (Note: Assume Total Asset Turnover ratio is calculated on Closing Total Assets i.e. Total Assets as of Mar 2014 rather than Average Total Assets). Please also calculate the average interest cost on debt assuming the interest coverage ratio is 3x
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.

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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.