Dollarama reported the following selected data (in millions):20172016Total assets$1,934.3$1,863.5Total liabilities2,186.71,763.1Profit519.4445.6Income tax expense196.3166.8Interest expense39.933.0(a)Calculate the debt to total assets and interest coverage ratios for 2017 and 2016. Did Dollarama's solvency improve, worsen, orremain unchanged in 2017? (Round answers to 1 decimal place, eg. 52.2 or 52.2%.)20172016Debt to total assetsInterest coveragetimestimesThe Dollarama's solvency

The interest coverage ratio is a debt as well as profitability ratio that calculates how easily a…

Jollarama 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

Jollarama 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

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

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