Total debt 1 000 000 5 000 000 Annual interest 100 000 500 000 Total sales 25 000 000 25 000 000 EBIT 6 250 000 6 250 000 Earnings available for common stockholders 3 690 000 3 450 000 Calculate the following debt and coverage ratios for the two companies Discuss their financial risk and ability to cover the costs in relation to each other Debt ratio Times interest earned ratio Calculate the following profitability ratios for the two companies Discuss their profitability relative to one anoth

Total debt 1 000 000 5 000 000 Annual interest 100 000 500 000 Total sales 25 000 000 25 000 000 EBIT 6 250 000 6 250 000 Earnings available for common stockholders 3 690 000 3 450 000 Calculate the following debt and coverage ratios for the two companies Discuss their financial risk and ability to cover the costs in relation to each other Debt ratio Times interest earned ratio Calculate the following profitability ratios for the two companies Discuss their profitability relative to one anoth

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Here are data on two firms: Equity ($ million) ROC (%) Cost of Capital (%) Debt ($ million) Аспе 140 60 16 10 Арех 440 160 14 11 a-1. Calculate the economic value added? (Do not round intermediate calculations. Enter your answers in millions) Acme Aрех Economic value added milion milion
Assume the following data for Cable Corporation and Multi-Media Incorporated. Net income Sales Total assets Total debt Stockholders' equity Cable Corporation $ 34,400 364,000 448,000 237,000 211,000 Cable Corporation Multi-Media, Incorporated a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Return on Stockholders' Equity Multi-Media Incorporated $ 128,000 2,700,000 % % 970,000 468,000 502,000
I need a and b answer
ssume the following relationships for the Caulder Corp.: Sales/Total assets 1.2\times Return on assets (ROA ) 5.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
Compute the current ratio for each of the following competitors. Which company is in the best position to pay its short-term obligations? Net sales Net income Current assets Current liabilities Total assets Current ratio Conclusion Complete this question by entering your answers in the tabs below. Gomez $ 1,350,000 110,000 342,000 190,000 410,000 Gomez Cruz Cruz $ 900,000 3,000 162,000 60,000 510,000 Compute the current ratio for each of the following competitors. Note: Round your answers to 2 decimal places. Current Ratio
Interpret the results: • Return on equity • Return on assets • Gross profit margin • Operating profit margin • Net profit margin
A) Dividend coverage = 1.22 b) Interest coverage = 7.75 C) P/E ratio = 1 D) gross profit margin = 92.25% E) return on assets = 16.9% f) Current ratio = 1.41 g) Quick ratio = 0.23 h) Earnings per share = 0.037 3. Analyzing and interpreting ratios 4. Based on your analysis and interpretation, prepare a detailed and effective report to management on the company's performance for 2022.
Horizontal Analysis The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous Year Accounts payable $79,375 $63,500 Long-term debt 43,741 52,700 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers.
Need answer with this question