Ratios Analyzing Long-Term Firm Solvency The following information is available for Percy Company: Annual Data 2013 Interest expense 2012 $185,000 $176,000 136,000 127,000 Income tax expense Net income 304,000 283,000 Capital expenditures 440,000 350,000 Cash provided by operating activities 247,000 223,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 $3,310,000 $2,900,000 1,900,000 Total liabilities Total stockholders' equity 2,200,000 Calculate the following: Note: Round all answers to two decimal places. a. 2013 debt-to-equity ratio. b. 2013 times-interest-earned ratio. c. 2013 operating-cash-flow-to-capital-expenditures ratio.
Ratios Analyzing Long-Term Firm Solvency The following information is available for Percy Company: Annual Data 2013 Interest expense 2012 $185,000 $176,000 136,000 127,000 Income tax expense Net income 304,000 283,000 Capital expenditures 440,000 350,000 Cash provided by operating activities 247,000 223,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 $3,310,000 $2,900,000 1,900,000 Total liabilities Total stockholders' equity 2,200,000 Calculate the following: Note: Round all answers to two decimal places. a. 2013 debt-to-equity ratio. b. 2013 times-interest-earned ratio. c. 2013 operating-cash-flow-to-capital-expenditures ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ssubject :-Accounting
Transcribed Image Text:Ratios Analyzing Long-Term Firm Solvency
The following information is available for Percy Company:
Annual Data
2013
Interest expense
2012
$185,000 $176,000
136,000 127,000
Income tax expense
Net income
304,000 283,000
Capital expenditures
440,000 350,000
Cash provided by operating activities 247,000 223,000
Year-End Data
Dec. 31, 2013 Dec. 31, 2012
Total liabilities
$3,310,000
$2,900,000
Total stockholders' equity 2,200,000
1,900,000
Calculate the following:
Note: Round all answers to two decimal places.
a. 2013 debt-to-equity ratio.
b. 2013 times-interest-earned ratio.
c. 2013 operating-cash-flow-to-capital-expenditures ratio.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education