Concept explainers
a) Times interest earned: The times interest earned ratio calculates the ability of a company to pay off its debts. It is also called as interest coverage ratio.
To calculate: The times interest earned ratio
b) Debt to equity ratio: It is a ratio that indicates the soundness of long-term financial policies of a company. It also measures company’s financial leverage.
To calculate: The Debt to equity ratio
c) Earnings per share: It calculates the net income earned by the company per outstanding share.
To calculate: Earnings per share
d) Price Earnings Ratio: The price earnings ratio compares company’s stock price to its earnings per share.
To calculate: The Price Earnings Ratio
e)
To calculate: The Rate of Return on Common Stock
Trending nowThis is a popular solution!
Chapter 14 Solutions
Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)
- Give correct option for following data of this general accounting questionarrow_forwardGeneral Accountingarrow_forwardIf an inventory is updated perpetually, which of the equations is correct? A. Cost of goods sold = Beginning inventory - Purchases - Ending inventory B. Cost of goods sold = Beginning inventory + Purchases + Ending inventory C. Ending inventory = Beginning inventory + Purchases - Cost of goods sold D. Ending inventory = Beginning inventory + Purchases + Cost of goods soldarrow_forward
- Please provide solution for this general accounting questionarrow_forwardIf the materials price variance is $3000 F and the materials quantity and labor variances are each $2700 U, what is the total materials variance? a. $2700 U. b. $300 F. c. $3150 U. d. $3000 F.arrow_forwardsub. general accountarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education