Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. Ratio of fixed assets to long-term liabilities: Ratio of fixed assets to long-term liabilities is determined by dividing fixed assets and long-term liabilities. Formula: Ratio of fixed assets to long-term liabilities = Fixed assets Long-term liabilities To compute: Ratio of fixed assets to long-term liabilities. Given info: Fixed assets and long-term liabilities
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. Ratio of fixed assets to long-term liabilities: Ratio of fixed assets to long-term liabilities is determined by dividing fixed assets and long-term liabilities. Formula: Ratio of fixed assets to long-term liabilities = Fixed assets Long-term liabilities To compute: Ratio of fixed assets to long-term liabilities. Given info: Fixed assets and long-term liabilities
Solution Summary: The author explains that the ratio of fixed assets to long-term liabilities is 3.5.
Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.
Chapter 14, Problem 14.6BE
a)
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.
Ratio of fixed assets to long-term liabilities: Ratio of fixed assets to long-term liabilities is determined by dividing fixed assets and long-term liabilities.
Formula:
Ratio of fixed assets to long-term liabilities=Fixed assets Long-term liabilities
To compute: Ratio of fixed assets to long-term liabilities.
Given info: Fixed assets and long-term liabilities
b)
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.
Ratio of liabilities to stockholders’ equity: Ratio of liabilities to stockholders’ equity is determined by dividing liabilities and stockholders’ equity.
Formula:
Ratio of liabilities to stockholders' equity=Total liabilitiesStockholders' equity
To compute: Ratio of liabilities to stockholders’ equity
Given info: Total liabilities and Stockholders’ equity
Sims Inc. had a $195,000beginning balance in Accounts Receivable. During the year, credit sales totaled $820,000, and collections from customers amounted to $700,000. What was the net amount of receivables included in current assets at the end of the year, before any provision for doubtful accounts?
Compute the ending carrying value of the trade name for 2010 and 2011.