Homework Help is Here – Start Your Trial Now!
Business
Finance
times interest earned k. cash coverage ratio l. current ratio and quick ratio

times interest earned k. cash coverage ratio l. current ratio and quick ratio

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
See similar textbooks
icon
Related questions
Question

j. times interest earned

k. cash coverage ratio

l. current ratio and quick ratio

 

Financial Ratios. Here are simplified financial statements for Phone Corporation in a recent 7. year: INCOME STATEMENT (Figures in $ millions) 13,193 4,060 Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 4,049 2,518 2,566 685 Income before tax 1,881 Taxes (at 35%) 658 Net income 1,223 Dividends 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 89 %24 158 Receivables 2,382 187 2,490 Inventories ne 238 Other current assets 867 932 $ 3,525 $ 3,818 19,915 Total current assets Net property, plant, and equipment Other long-term assets 19,973 4,216 $27,714 3,770 $27,503 Total assets Liabilities and shareholders' equity Payables Short-term debt $ 2,564 $ 3,040 1,573 1,419 Other current liabilities 811 787 Total current liabilities $ 4,794 $ 5,400 Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity 7,018 6,833 6,149 9,121 $27,503 6,178 9,724 $27,714 Calculate the following financial ratios for Phone Corporation: (LO4-3)
Transcribed Image Text:Financial Ratios. Here are simplified financial statements for Phone Corporation in a recent 7. year: INCOME STATEMENT (Figures in $ millions) 13,193 4,060 Net sales Cost of goods sold Other expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 4,049 2,518 2,566 685 Income before tax 1,881 Taxes (at 35%) 658 Net income 1,223 Dividends 856 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 89 %24 158 Receivables 2,382 187 2,490 Inventories ne 238 Other current assets 867 932 $ 3,525 $ 3,818 19,915 Total current assets Net property, plant, and equipment Other long-term assets 19,973 4,216 $27,714 3,770 $27,503 Total assets Liabilities and shareholders' equity Payables Short-term debt $ 2,564 $ 3,040 1,573 1,419 Other current liabilities 811 787 Total current liabilities $ 4,794 $ 5,400 Long-term debt and leases Other long-term liabilities Shareholders' equity Total liabilities and shareholders' equity 7,018 6,833 6,149 9,121 $27,503 6,178 9,724 $27,714 Calculate the following financial ratios for Phone Corporation: (LO4-3)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS