NRH Corp. Common-size Income Statement Sales 100% Cost of goods sold 63 Operating expenses 21 Interest expense 5 Income tax 4 Net income 7% Sales $8,000,000 NRH Corp. Common-size Balance Sheet Cash 5% Accounts receivable 20 Inventory 25 PP&E, net 50 Total assets 100% Short-term debt 20% Long-term debt 35 Common equity 45 Total liabilities and equity 100% Total assets $6,000,000 NRH Corp’s current ratio is closest to: 1.90. 1.20. 2.50. NRH Corp’s times interest earned ratio is closest to: 1.6. 7.0. 3.2.
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NRH Corp. |
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Sales |
100% |
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Cost of goods sold |
63 |
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Operating expenses |
21 |
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Interest expense |
5 |
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Income tax |
4 |
|
Net income |
7% |
|
Sales |
$8,000,000 |
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NRH Corp. Common-size |
|
|
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Cash |
5% |
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|
20 |
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Inventory |
25 |
|
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PP&E, net |
50 |
|
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Total assets |
100% |
|
|
Short-term debt |
20% |
|
|
Long-term debt |
35 |
|
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Common equity |
45 |
|
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Total liabilities and equity |
100% |
|
|
Total assets |
$6,000,000 |
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NRH Corp’s
NRH Corp’s times interest earned ratio is closest to:
current ratio : current assets/ current liabilities
Interest Earned ratio : Income earned before taxes and interest/ Interest
Total assets = Total liabilities
hence total liabilities are $6,000,000
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