LO 10-5CorporationE10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned RatioAt May 31, 2019, FedEx Corporation reported the following amounts (in millions) in its financialstatements:Total AssetsTotal LiabilitiesInterest ExpenseIncome Tax ExpenseNet Income gameTot 1500 2019$54,40036,600ainuoms 210000565901155402018$52,33032,9005602204,570 Required:1.2.CHAPTER 10ausal bro8 imunoelds to3 boiligma) lubeCompute the debt-to-assets ratio and times interest earned ratio (to two decimal places) for2019 and 2018.AmongUse your answers to requirement 1 to determine whether, in 2019, (a) creditors were provid-ing a greater (or lesser) proportion of financing for FedEx's assets and (b) FedEx was more(or less) successful at covering its interest costs, as compared to 2018.OBGUZZI brod sdfEffects of a Promium Bond Issue and First Interest$2.01 03LO 10-S

A leverage ratio called total-debt-to-total-assets indicates how much debt a corporation has in…

LO 10-5 oration E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio At May 31, 2019, FedEx Corporation reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $54,400 36,600 590 115 540 alborg 2018 $52,330 32,900 560 220 4,570

LO 10-5 oration E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio At May 31, 2019, FedEx Corporation reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $54,400 36,600 590 115 540 alborg 2018 $52,330 32,900 560 220 4,570

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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Adjusting Allowance for Doubtful Accounts and Bad Debt Expense Merck & Company reported the following in its financial statements. $ millions Accounts receivable, net Allowance for doubtful accounts 2016 2017 2018 2019 $8,773 $8,591 $8,839 $8,473 244 199 149 108 Adjust the balance sheet and income statement to reflect a 1.97874% of Allowance for doubtful accounts to Gross accounts receivables for each year. Assume a tax rate of 20%. • Round answers to one decimal. Use a negative sign to indicate if the adjustment decreases an account balance. 2016 2017 2018 2019 Adjusted allowance for doubtful accts. $ 178.4 $ 173.9 $ 177.8 $ 169.8 Income Statement Adjustments Bad debts expense Income tax expense at 20% Net Income (65.6) (25.1) 28.8 61.8 (13.1) (5) 5.8 12.4 52.5 20.1 (23.1) (49.4) Balance Sheet Adjustments Allowance for doubtful accounts (65.6) (90.6) (61.8) 0 Accounts receivable, net 65.6 90.6 61.8 0 Deferred tax liabilities 13.1 18.1 12.4 0 Retained Earnings 52.5 72.5 49.4 0
QUESTION TWO [20] Complete the 2017 Statement of Financial Statement (balance sheet) for Sutherland Industries using the information that follows. Statement of Financial Statement (Balance Sheet) Sutherland Industries December 31, 2017 Cash Marketable securities R50,000 Notes payable R60,000 Accounts payable R240,000 Accounts receivable Accruals 40,000 Inventories Total current liabilities Total current assets Long-term debt Net fixed assets Total assets Stockholders' equity 1 200,000 Total liabs & owners' equity The following financial data for end 2017 is also available: i. Sales totalled R3, 600,000. ii. The gross profit margin was 25%. iii. Inventory turnover was 6.0. iv. There are 360 days in the year. v. The average collection period is 40 days. vi. The current ratio was 1.60. vii. The total asset turnover ratio was 1.20. viii. The debt ratio was 60%.
Exercise 19-24 Beilman Inc. reports the following pretax income (loss) for both book and tax purposes. Year PretaxIncome (Loss) Tax Rate 2018 $120,000 20 % 2019 90,000 20 % 2020 (280,000) 25 % 2021 120,000 25 % The tax rates listed were all enacted by the beginning of 2018. A) Prepare the income tax section of the 2020 income statement beginning with the line “Operating loss before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) B) Prepare the income tax section of the 2021 income statement beginning with the line “Income before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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9 LISICH An extract from a printing company's 2021 financial statements follows: Balance sheet As of December 31, 2021 As of December 31, 2020 Total assets Total liabilities Total stockholders' equity 1) 0.75 O2) 0.65 What was the company's debt-to-assets ratio for 2021? 3) 3.32 57,699 4) 0.50 37,682 €20,017 54,013 37,919 16,096
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LO 8-3 E8-10 Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest domic The following transactions took place for Smart Solutions Inc. 2020 a. July 1 b. Dec. 31 2021 c. July 1 250 06 Loaned $70,000 to employees of the company and received back one-year, 10 percent notes. shunt at las Accrued interest on the notes. d. July 1 berupa wollReceived interest on the notes. (No interest has been recorded since December 31.) ele St Received principal on the notes. noxidoa bed to Jouons tedW oli ni songly Bubanu adi 11 sqx mis bs& lo tuoms isrw Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.
What is Ratio Corporation's Current Ratio at 12/31/2021? Question 2 options: 2.11 2.22 1.21 None of these options
Required information Exercise 7-5 (Algo) Notes payable—discount basis LO 2 Skip to question [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $255,400. The interest rate charged by the bank was 5.00%. The bank made the loan on a discount basis. Exercise 7-5 (Algo) Part a Required:a-1. Calculate the loan proceeds made available to Powell.
Sales Depreciation COGS Interest Cash Accts Receivables Notes Payable L ong-term debt Net fixed assets Accounts Payable Inventory Dividend payout Tax rate 2020 21. What is the ROE for 2021? $5,300 $5,900 750 850 2400 180 200 200 800 1500 3000 250 700 2021 2900 196 500 22. What is the Inventory period in 2021? 400 550 1950 3500 400 900 30% 35% 30% 20. What is the cash flow from operating activities?