I need help to determine the following; 4. For P & B Manufacturing to assess its debt management I need help to calculate the debt-to-equity ratio at the end of the year AND the equity multiplier. Include calculations and round answers to 2 decimal places. Current assets:Cash and cash equivalentsAccounts ReceivableInventoryTotal current assetsProperty, plant and equipmentLess accumulated depreciationNet property, plant and equipmentTotal assetsCurrent liabilities:Accounts payableAccrued liabilitiesIncome taxes payableTotal current liabilitiesP & B ManufacturingComparative Balance Sheet(dollars in millions)Bonds payableTotal liabilitiesStockholders' equity:Common stockRetained earningsAssetsEnding BalanceLiabilities and Stockholders' EquityTotal stockholders' equityTotal liabilities and stockholders' equity655306001,1951,7196401,0792,27418094723461805268009481,7482,274Beginning Balance915725801,2431,6564801,1762,419180105883733106838009361,7362,419P & B ManufacturingIncome StatementFor Year Ended December 31(dollars in millions)SalesCost of goods soldGross MarginSelling and administrative expensesNet operating incomeNonoperating items: Gain on sale of equipmentIncome before taxesIncome taxesNet Income4,4503,550900820804842955P & B Manufacturing also provided the following information:1 The company sold equipment that had an original cost of $15 million andaccumulated depreciation of $9 million. The cash proceeds from the sale were$11 million. The gain on the sale was $4 million.2The company did not issue any new bonds during the year3The company paid a cash dividend during the year4 The company did not complete any common stock transactions during theyear 4a4bTo assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round yourcalculations & answers to 2 decimal placesCalculate Debt-to-Equity ratioCalculate Equity multiplier

Ratios provide a way to compare a company's financial performance to its industry peers,…

To assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places Calculate Debt-to-Equity ratio Calculate Equity multiplier

To assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places Calculate Debt-to-Equity ratio Calculate Equity multiplier

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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