Please do not give solution in image format thanku Smith Inc. is a retailer of snow skiing gear. During Year 2, Smith expanded its retail business by adding over 50 shops. The following information isobtained from the comparative financial statements included in the company's current annual report:Dec. 31. Year 2Dec. 31. Year 1$26,000,000$18,000,00034,000,00038,000,000Total liabilitiesTotal stockholders' equityFOR THE FISCAL YEARS ENDEDDepreciation expenseInterest expenseIncome tax expenseNet incomeNet cash provided by operationsTotal dividends paidCash used to purchase plant assetsPayments on long-term debtRequired:Dec. 31, Year 2$2,000,0003,400,00012,600,0006,000,00041,000,0002,000,00032,000,0001,600,000Year 1Dec. 31, Year 1$6,000,0003,200,00018,100,000.15,000,000(400,000)12,000,00018,000,0001,800,000Using the information provided above, compute the following for both years Round your answers to two decimal places..A. Debt-to-equity ratio (at each year-end)Year 2 Required:Using the information provided above, compute the following for both years. Round your answers to two decimal places.A. Debt-to-equity ratio (at each year-end)Year 2Year 1B. Times-interest-earned ratioYear 2timestimesYear 1

TIME INTEREST EARNED RATIOTimes interest earned ratio is the ratio between EBIT and interest…

Required: Using the information provided above, compute the following for both years. Round your answers to two decimal places. A. Debt-to-equity ratio (at each year-end) Year 2 Year 1 B. Times-interest-earned ratio Year 2 times times Year 1

Required: Using the information provided above, compute the following for both years. Round your answers to two decimal places. A. Debt-to-equity ratio (at each year-end) Year 2 Year 1 B. Times-interest-earned ratio Year 2 times times Year 1

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

See similar textbooks

Similar questions

Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $179,400; common stock, $84,000; and retained earnings, $35,896.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 20,000 Accounts payable $ 17,500 Short-term investments 8,200 Accrued wages payable 4,200 Accounts receivable, net 31,400 Income taxes payable 4,300 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 69,400 Prepaid expenses 2,850 Common stock 84,000 Plant assets, net 147,300 Retained earnings 66,500 Total assets $ 245,900 Total liabilities and equity $ 245,900 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 296,950 Gross profit 153,650 Operating expenses 98,600 Interest expense 3,800…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $219,400; common stock, $81,000; and retained earnings, $34,953.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 12,000 Accounts payable $ 16,500 Short-term investments 9,000 Accrued wages payable 3,800 Accounts receivable, net 33,200 Income taxes payable 4,700 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 71,400 Prepaid expenses 2,800 Common stock 81,000 Plant assets, net 151,300 Retained earnings 67,050 Total assets $ 244,450 Total liabilities and equity $ 244,450 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 298,050 Gross profit 157,550 Operating expenses 99,500 Interest expense…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory. $49,900: total assets. $209,400; common stock, $87,000; and retained earnings, $41,829.) CABOT CORPORATION Balance Sheet December 31 Assets Liabilities and Equity Cash Short-term investments Accounts receivable, net Merchandise inventory 18, 000 Accounts payable 9, 200 30, 800 Income taxes payable 40,150 Long-term note payable, secured by 18,500 3, 800 4,400 65,400 Accrued wages payable mortgage on plant assets Prepaid expenses Plant assets, net 2,800 Common stock 151, 300 Retained earnings $ 252, 250 Total liabilities and equity 87, e00 73,150 $ 252, 250 Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 $ 453, 600 297,850 155,750 98, 500 4,800 52,450 21,129 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net…
i have completed this in excel but would like to compare my answers
Please answer Requirement 4,5,6,7,8,9,10 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $50,900; total assets, $199,400; common stock, $81,000; and retained earnings, $48,724.) CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Assets Cash $ 16,000 Accounts payable 8,200 Accrued wages payable 30, 600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 3,050 Common stock 153, 300 Retained earnings 6 251,300 Total liabilities and equity : 18,500 4,400 3,000 63,400 81,000 81,000 6 251, 300 Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total asseta CABOT CORPORATION Income Statement Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense For Current Year Ended Decenber 31 $…
The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net) $1,448,000 Liabilities: Current liabilities $146,000 Note payable, 6%, due in 15 years 724,000 Total liabilities $870,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $870,000 Common stock, $10 par (no change during year) 870,000 Retained earnings: Balance, beginning of year $928,000 Net income 350,000 $1,278,000 Preferred dividends $34,800 Common dividends 83,200 118,000 Balance, end of year 1,160,000 Total stockholders' equity $2,900,000 Sales $15,437,100 Interest expense $43,440 Assuming that total assets were $3,581,000 at the beginning of the current fiscal year, determine the following: When required, round to one…
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,212,000 Liabilities: Current liabilities $120,000 Note payable, 6%, due in 15 years 606,000 Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $544,500 Common stock, $10 par (no change during year) 544,500 Retained earnings: Balance, beginning of year $580,000 Net income 226,000 $806,000 Preferred dividends $21,780 Common dividends 58,220 80,000 Balance, end of year 726,000 Total stockholders' equity $1,815,000 Sales $16,351,500 Interest expense $36,360 Assuming that total assets were $2,414,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal…
Benson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is: Select one: A. 117.30% B. 86.36% C. 120.92% D. 130.29%
Equator Corporation has the following data available on December 31 for the year just ended:Average total assets for the year $ 800,000Total stockholders' equity at the beginning of the yearTotal stockholders' equity at the end of the year 600,000Net Income 250,000Interest expense 30,000Preferred dividends 50,000525,000The company’s return on assets for the year is closest toa. 21.25%.b. 25.00%.c. 31.25%.d. 44.44%.
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 Preferred dividends (100,000) Common dividends (400,000) Balance, end of year 2,000,000 Total stockholders’ equity $5,000,000 Sales $18,900,000 Interest expense $120,000 Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the…
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,000,000 $3,000,000 Total liabilities Stockholders' equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: < Balance, beginning of year $1,570,000 930,000 $2,500,000 Net income $100,000 Preferred dividends 400,000 500,000 Common dividends 2,000,000 Balance, end of year $5,000,000 Total stockholders' equity $18,900,000 Sales $120,000 Interest expense Total stockholders' equity $5,000,000 Sales $18,900,000 Interest expense $120,000 Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place. a. Ratio of fixed assets to…