DokencesRefer the following table.Focus Metals Inc.Comparative Balance Sheet InformationNovember 30(millions of $)CashAccounts receivable (net)InventoryPlant and equipment (net)Accounts payableLong-term notes payable*Common sharesRetained earnings$Focus Metals Inc.Income StatementNet salesCost of goods soldGross profitOperating expenses:Depreciation expenseOther expensesTotal operating expensesProfit from operations:202323 $414742,6862971,770370760For Year Ended November 30(millions of $)$*90% of the plant and equipment are secured by long-term notes payable.2,770213202293260672,33037027720232022$2,790 $1,992972762$1,818 $1,230102 $745847971$102612714516 Focus Metals Inc.Income StatementFor Year Ended November 30(millions of $)Net salesCost of goods sold.Gross profitOperating expenses:Depreciation expenseOther expensesTotal operating expensesProfit from operations.Interest expenseIncome tax expenseProfitRatio2023$2,790972$1,818Debt ratioEquity ratioPledged assets to secured liabilitiesTimes interest earned$$2022$1,992762$1,230Required:Calculate Focus Metals' solvency ratios for 2022 and 2023. (Round the final answers to102 $ 102745612847714971 $5161451795155775 $2822023%%1times2022%%1times

Ratio analysis is defined as a method of analyzing the financial statements where different ratios…

Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) Cash Accounts receivable (net) Inventory Plant and equipment (net) Accounts payable Long-term notes payable* Common shares Retained earnings $ Focus Metals Inc. Income Statement Net sales Cost of goods sold. Gross profit Operating expenses: 2023 Depreciation expense Other expenses Total operating expenses Profit from operations. 2022 23 $ 93 414 260 74 67 2,686 297 1,770 370 760 *90% of the plant and equipment are secured by long-term r For Year Ended November 30 (millions of $) 2,770 213 2,330 370 277 2023 $2,790 2022 $1,992 972 762 $1,818 $1,230 102 745 847 971 3 $ 102 612 714 516

Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) Cash Accounts receivable (net) Inventory Plant and equipment (net) Accounts payable Long-term notes payable* Common shares Retained earnings $ Focus Metals Inc. Income Statement Net sales Cost of goods sold. Gross profit Operating expenses: 2023 Depreciation expense Other expenses Total operating expenses Profit from operations. 2022 23 $ 93 414 260 74 67 2,686 297 1,770 370 760 *90% of the plant and equipment are secured by long-term r For Year Ended November 30 (millions of $) 2,770 213 2,330 370 277 2023 $2,790 2022 $1,992 972 762 $1,818 $1,230 102 745 847 971 3 $ 102 612 714 516

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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