Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data Current Year Previous Year Interest expense $98,000 $82,000 Income tax expense 213,500 185,000 Net income 506,500 395,000 Capital expenditures 330,000 400,000 Cash provided by operating activities 435,000 390,000 Year-End Data Dec. 31, Current Year Dec. 31, Previous Year Total liabilities $2,200,000 $1,900,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places.
Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data Current Year Previous Year Interest expense $98,000 $82,000 Income tax expense 213,500 185,000 Net income 506,500 395,000 Capital expenditures 330,000 400,000 Cash provided by operating activities 435,000 390,000 Year-End Data Dec. 31, Current Year Dec. 31, Previous Year Total liabilities $2,200,000 $1,900,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ratios Analyzing Long-Term Firm Solvency
The following information is available for Antler Company:
| Annual Data | Current Year | Previous Year |
|---|---|---|
| Interest expense | $98,000 | $82,000 |
| Income tax expense | 213,500 | 185,000 |
| Net income | 506,500 | 395,000 |
| Capital expenditures | 330,000 | 400,000 |
| Cash provided by operating activities | 435,000 | 390,000 |
| Year-End Data | Dec. 31, Current Year |
Dec. 31, Previous Year |
|---|---|---|
| Total liabilities | $2,200,000 | $1,900,000 |
| Total stockholders' equity | 4,000,000 | 3,600,000 |
Calculate the following:
Note: Round all answers to two decimal places.
a. Current Year debt-to-equity ratio.
Answer
b. Current Year times-interest-earned ratio.
Answer
c. Current Year operating-cash-flow-to-capital-expenditures ratio.
Answer
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