Examine the following selected financial information forBest ValueCorporation andModernStores, Inc., as of the end of their fiscal years ending in2018:Data table(In millions)Best Value CorporationModern Stores, Inc.1.Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . $15,256 $203,110 2.Total common stockholders' equity. . . . . $3,075 $71,460 3.Operating income. . . . . . . . . . . . . . . . . . . . $1,350 $26,820 4.Interest expense. . . . . . . . . . . . . . . . . . . . . . $88 $2,020 5.Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . . 6.Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.Times interest earned. . . . . . . . . . . . . . . . . Requirements1.Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating the ratios in this exercise.2.Evaluate each company's long-term debt-paying ability (strong, medium, weak).1. Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. (Round your answers to two decimal places, X.XX. Enter amounts in millions as provided to you in the problem statement.) (In millions)Best Value CorporationModern Stores, Inc.1.Total assets. . . . . . . . . . . . . . . . . $15,256 $203,110 2.Total Stockholders' equity. . . . . . $3,075 $71,460 3.Operating income. . . . . . . . . . . . $1,350 $26,820 4.Interest expense. . . . . . . . . . . . . $88 $2,020 5.Leverage ratio. . . . . . . . . . . . . . .

ratio analysis is considered to be important part for in decision making decision making as it…

Answered: rporation Modern Stores, Inc. 1. Total…

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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Question

Examine the following selected financial information for

Best Value

Corporation and

Modern

Stores, Inc., as of the end of their fiscal years ending in

2018:

Data table

(In millions)	Best Value Corporation
1.	Total assets. . . . . . . . . . . . . . . . . . . . . . . . . .	$15,256	$203,110
2.	Total common stockholders' equity. . . . .	$3,075	$71,460
3.	Operating income. . . . . . . . . . . . . . . . . . . .	$1,350	$26,820
4.	Interest expense. . . . . . . . . . . . . . . . . . . . . .	$88	$2,020
5.	Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . .
6.	Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.	Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.	Times interest earned. . . . . . . . . . . . . . . . .

Requirements

1.	Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating the ratios in this exercise.
2.	Evaluate each company's long-term debt-paying ability (strong, medium, weak).

1. Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. (Round your answers to two decimal places, X.XX. Enter amounts in millions as provided to you in the problem statement.)

(In millions)	Best Value Corporation	Modern Stores, Inc.
1.	Total assets. . . . . . . . . . . . . . . . .		$15,256	$203,110
2.	Total Stockholders' equity. . . . . .		$3,075	$71,460
3.	Operating income. . . . . . . . . . . .		$1,350	$26,820
4.	Interest expense. . . . . . . . . . . . .		$88	$2,020
5.	Leverage ratio. . . . . . . . . . . . . . .