(In millions) 1. Total assets 2. Total common stockholders' equity. 3. Operating income....... 4. Interest expense......... 5. Leverage ratio .... 6. Total debt ...... 7. Debt ratio................. 8. Times interest earned ................ The Deal Corporation $16,870 $ 3,080 $ 1,400 $ 87 Simple Stores, Inc. $203,130 $ 71,310 $ 26,930 $ 2,050
(In millions) 1. Total assets 2. Total common stockholders' equity. 3. Operating income....... 4. Interest expense......... 5. Leverage ratio .... 6. Total debt ...... 7. Debt ratio................. 8. Times interest earned ................ The Deal Corporation $16,870 $ 3,080 $ 1,400 $ 87 Simple Stores, Inc. $203,130 $ 71,310 $ 26,930 $ 2,050
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Examine the following
selected financial information for The Deal Corporation and Simple Stores, Inc., as of the
end of their fiscal years ending in 2018:
1. Complete the table, calculating all the requested information for the two companies. Use
year-end figures in place of averages where needed for the purpose of calculating the ratios
in this exercise.
2. Evaluate each company’s long-term debt-paying ability (strong, medium, weak)
![(In millions)
1. Total assets .........
2. Total common stockholders' equity ...........
3. Operating income....
4. Interest expense......
5. Leverage ratio......
6. Total debt .........
7. Debt ratio............
8. Times interest earned
The Deal Corporation
$16,870
$ 3,080
$ 1,400
$
87
Simple Stores, Inc.
$203,130
$ 71,310
$ 26,930
$ 2,050](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f5dbffb-4337-4edd-b99b-c9505f1d3bef%2F4a18ce93-39a3-4e0b-bdd4-02e202466f67%2Foo5ltpl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(In millions)
1. Total assets .........
2. Total common stockholders' equity ...........
3. Operating income....
4. Interest expense......
5. Leverage ratio......
6. Total debt .........
7. Debt ratio............
8. Times interest earned
The Deal Corporation
$16,870
$ 3,080
$ 1,400
$
87
Simple Stores, Inc.
$203,130
$ 71,310
$ 26,930
$ 2,050
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education