Sepracor, Inc., a U.S. drug company, reported the following information. The company prepares its financial statements in accordance with U.S. GAAP. Current Liabilities 2007 (,000) $554,114 Convertible Subordinated Debt 648,020 Total Liabilities Stockholders' Equity 1,228,313 176,413 Net Income 58,333 Analysts attempting to compare Sepracor to international drug companies may face a challenge due to differences in accounting for convertible debt under iGAAP. Under IAS 32, Financial Instruments, convertible bonds, at issuance, must be classified separately into their debt and equity components based on estimated fair value. Compute the following ratios for Sepracor, Inc. (assume that year-end balances approximate annual averages.) (1) Return on assets. (2) Return on stockholders' equity (3) Debt to asset ratio
Sepracor, Inc., a U.S. drug company, reported the following information. The company prepares its financial statements in accordance with U.S. GAAP. Current Liabilities 2007 (,000) $554,114 Convertible Subordinated Debt 648,020 Total Liabilities Stockholders' Equity 1,228,313 176,413 Net Income 58,333 Analysts attempting to compare Sepracor to international drug companies may face a challenge due to differences in accounting for convertible debt under iGAAP. Under IAS 32, Financial Instruments, convertible bonds, at issuance, must be classified separately into their debt and equity components based on estimated fair value. Compute the following ratios for Sepracor, Inc. (assume that year-end balances approximate annual averages.) (1) Return on assets. (2) Return on stockholders' equity (3) Debt to asset ratio
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 43P
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