Use the following data to calculate the liquidity and profitability ratios listed below.Average common shares outstanding10,000Current liabilities$100,000Capital expenditures$20,000Net income21,000Cash provided by operating activities32,000Net sales150,000Dividends paid5,000Total liabilities126,000Current assets190,000Total assets210,000InstructionsCompute the following:(a) Current ratio.(d) Debt to assets ratio.(b) Working capital.(e) Free cash flow.(c) Earnings per share.

a. Current ratio = Current assets / current liabilities = $190,000 / $100,000 = 1.90 b. Working…

Answered: Use the following data to calculate the…

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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According to the information in the table below, which of the following shows Debt/Equity (D/E) ratio and Interest Coverage ratio (ICR) correctly. Long Term Debt 50,000 EBIT(Operating profit) 75,000 Shareholders' Equity 40,000 Interest expenses 15,000 Total Assets 140,000 Select one: a. D/E= 1.25% and ICR=5% b. D/E=1.25 and ICR=3.3 times c. D/E=1.25 and ICR=5 times d. D/E=0.80 and ICR=2.5 times
Calculate the following ratios, follow the steps and must interpret your answers , Current ratio Earning per share ratio Current assets=$89000 Current liabilities= 61000 Net income/profit=$18000 Number of shares common stock=76262 Total asset=770000
Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.5× Return on assets (ROA) 8.0% Return on equity (ROE) 12.0% 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. Profit margin: % Debt-to-capital ratio: %
Complete the balance sheet and sales information using the following financial data: Balance sheet Cash ________ Current liabilities _________ Accounts Receivable ________ Long-term debt 120,000 Inventories ________ Common stock _________ Total assets $600,000 Retained earnings 195,000 Total liabilities and equity _________ Sales ________ Cost of good sold ____40%sales__ Current ratio: 2.o X…
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 880,000 $ 3,200,000 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilities 2.50 1.50 1.5 Required: Determine the following balance sheet items:
Compute for the Current Assets.
Ratio Analysis Presented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance sheet Cash and cash equivalents $2,712 Marketable securities 27,128 Accounts receivable (net) 14,051 Total current assets 58,632 Total assets 184,617 Current liabilities 66,017 Long-term debt 12,738 Shareholders’ equity 119,487 Income Statement Interest expense 539 Net income before taxes 24,512 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio c. Current ratio
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) Cash 2004 2006 $1,376.73 $1,503.36 Accounts receivable Current assets Current liabilities Long-term debt Short-term debt Total liabilities Interest expense Capital expenditures Equity Cash from operations 1,097.16 735.30 3,563.56 3,168.33 3,285.39 6,057.95 16,940.81 3,351.63 1,033.96 4,568.83 22,628.42 25,743.17 1,516.90 1,288.29 1,545.48 211.50 4,587.67 (7,152.90) 9.89 Earnings before interest and taxes 1,589.84 155.98 1,877.84 (a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.) 2006 current ratio = 2004 current ratio= 2006 quick ratio= 2004 quick ratio= 2006 liabilities-to-equity= 2004 liabilities-to-equity= 2006 total debt-to-equity= 2004 total debt-to-equity= 2006 times interest earned = 2004 times interest earned = 2006 cash from…
Help calculating the following ratios: return on equity current ratio quick ratio debt-to-equity times interest earned
Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 4% Return on equity (ROE) 6% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %
Find the below: Cash ratio Inventory turnover EPS Total asset turnover Debt ratio Debt-to-equity ratio Times interest earned ROI Net profit margin ROE Market price/Book value P/E BALANCE SHEET ASSETS LIABILITIES & STOCKHOLDERS EQUITY Cash $ 1,500 Accounts payable $12,500 Marketable securities 2,500 Notes payable 12,500 Accounts receivable 15,000 Total current liabilities $25,000 Inventory 33,000 Long-term debt 22,000 Total current assets…
From the following information compute the following ratios:d) Debt to Equity Ratioe) Proprietary Ratio

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