The following financial information relates to Sunland Enterprises Inc. (amounts in thousands): 2022 2023 2024 Income before depreciation, amortization, interest, and taxes $1,491 $2,373 $3,600 Interest expense 154 348 400 Cash 53 112 214 Current liabilities (does not include any debt) 601 727 1,182 Bank loan payable (all long-term) 1,810 3,780 4,560 Shareholders' equity 3,880 5,280 7,282 (a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Debt to equity ratio 2022 % 2023 % Net debt as a percentage of total capitalization Interest coverage % times % times 2024 % % times
The following financial information relates to Sunland Enterprises Inc. (amounts in thousands): 2022 2023 2024 Income before depreciation, amortization, interest, and taxes $1,491 $2,373 $3,600 Interest expense 154 348 400 Cash 53 112 214 Current liabilities (does not include any debt) 601 727 1,182 Bank loan payable (all long-term) 1,810 3,780 4,560 Shareholders' equity 3,880 5,280 7,282 (a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Debt to equity ratio 2022 % 2023 % Net debt as a percentage of total capitalization Interest coverage % times % times 2024 % % times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The following financial information relates to Sunland Enterprises Inc. (amounts in thousands):
2022
2023
2024
Income before depreciation, amortization,
interest, and taxes
$1,491
$2,373
$3,600
Interest expense
154
348
400
Cash
53
112
214
Current liabilities (does not include any debt)
601
727
1,182
Bank loan payable (all long-term)
1,810
3,780
4,560
Shareholders' equity
3,880
5,280
7,282
(a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1
decimal place, e.g. 18.4 or 15.3%.)
Debt to equity ratio
2022
%
2023
%
Net debt as a
percentage of total
capitalization
Interest coverage
%
times
%
times
2024
%
%
times](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb6c7610-b764-4dc8-b417-27517efe3c5a%2F79c89e86-ec08-4c51-9352-85c6c1eb3914%2Fjzhr81_processed.png&w=3840&q=75)
Transcribed Image Text:The following financial information relates to Sunland Enterprises Inc. (amounts in thousands):
2022
2023
2024
Income before depreciation, amortization,
interest, and taxes
$1,491
$2,373
$3,600
Interest expense
154
348
400
Cash
53
112
214
Current liabilities (does not include any debt)
601
727
1,182
Bank loan payable (all long-term)
1,810
3,780
4,560
Shareholders' equity
3,880
5,280
7,282
(a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1
decimal place, e.g. 18.4 or 15.3%.)
Debt to equity ratio
2022
%
2023
%
Net debt as a
percentage of total
capitalization
Interest coverage
%
times
%
times
2024
%
%
times
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