Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data 2013 2012 Interest expense $118,000 $112,000 Income tax expense 233,500 215,000 Net income 526,500 425,000 Capital expenditures 320,000 400,000 Cash provided by operating activities 425,000 390,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total liabilities $2,230,000 $1,930,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places. a. 2013 debt-to-equity ratio. Answer b. 2013 times-interest-earned ratio. Answer c. 2013 operating-cash-flow-to-capital-expenditures ratio. Answer
Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data 2013 2012 Interest expense $118,000 $112,000 Income tax expense 233,500 215,000 Net income 526,500 425,000 Capital expenditures 320,000 400,000 Cash provided by operating activities 425,000 390,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total liabilities $2,230,000 $1,930,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places. a. 2013 debt-to-equity ratio. Answer b. 2013 times-interest-earned ratio. Answer c. 2013 operating-cash-flow-to-capital-expenditures ratio. Answer
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 | 2013 | 2012 |
|---|---|---|
| Interest expense | $118,000 | $112,000 |
| Income tax expense | 233,500 | 215,000 |
| Net income | 526,500 | 425,000 |
| Capital expenditures | 320,000 | 400,000 |
| Cash provided by operating activities | 425,000 | 390,000 |
| Year-End Data | Dec. 31, 2013 | Dec. 31, 2012 |
|---|---|---|
| Total liabilities | $2,230,000 | $1,930,000 |
| Total |
4,000,000 | 3,600,000 |
Calculate the following:
Note: Round all answers to two decimal places.
a. 2013 debt-to-equity ratio.
Answer
b. 2013 times-interest-earned ratio.
Answer
c. 2013 operating-cash-flow-to-capital-expenditures ratio.
Answer
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