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Chapter 24, Problem 4SEA

ANALY SIS OF LEVERAGE Based on the financial statement data in Exercise 24-1A, compute the following leverage measures for 20-2 (round all calculations to two decimal places):

(a) Debt-to-equity ratio

(b) Times interest earned ratio (Bond interest is $24,200.)

(c) Assets-to-equity ratio

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Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided: Item Sales Beginning Raw Material Inventory Direct Material Purchased Factory Overhead Finished Goods Inventory - January 1 Work in Process - January 1 Work in Process - December 31 Ending Raw Material Inventory Finished Goods Inventory - December 31 Net Income Direct Labor Cost of Goods Sold Amount $ 8,50,000 $ $ 74,000 $ 3,08,000 $ 90,000 $ 1,44,000 $ 74,000 $ 98,000 $ 58,000 $ 1,68,000 $65,000 $ 1,55,000 $ 6,55,000 Use this information to prepare a detailed Schedule of Costs of Goods Manufactured for FY 2018.

Chapter 24 Solutions

Bundle: College Accounting, Chapters 1-9, Loose-Leaf Version, 22nd + LMS Integrated for CengageNOWv2, 2 terms Printed Access Card for Heintz/Parry's College Accounting, Chapters 1-27, 22nd

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License