Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Compute each of the following ratios for Jarir, Inc. and Extra Inc. as of January 31, 2009, using
the amounts originally reported in their
(1) Liabilities to Assets Ratio = Total Liabilities/Total Assets
(2) Long-Term Debt to Long-Term Capital Ratio = Long-Term Debt/(Long-Term Debt +
Shareholders’ Equity)
Transcribed Image Text:Question# 2
Some retailing companies own their own stores or acquire their premises under capital leases. Other
retailing companies acquire the use of store facilities under operating leases, contracting to make future
payments. An analyst comparing the capital structure risks of retailing companies may want to adjust
reported financial statement data to put all firms on a comparable basis. Certain data from the financial
statements of Jarir Inc. and Extra Inc. follow (amounts in millions).
Balance Sheet as of January 31, 2009
Jarir Inc.
Extra Inc.
Current Liabilities
$2,158
$1,255
Long-term debt
2,897
Other non-current liabilities
1,019
946
Sharcholders' equity
4,387
1,874
Total
$ 7,564
$6,972
Minimum Payment under operating leases
2009
$1,069
$478
2010
927
455
2011
712
416
2012
520
373
| 2013
386
341
After 2013
$1,080
$1,334
Total
$4,694
$3,397
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