Examine the following selected financial information forBest ValueCorporation andModernStores, Inc., as of the end of their fiscal years ending in2018:Data table(In millions)Best Value CorporationModern Stores, Inc.1.Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . $15,256 $203,110 2.Total common stockholders' equity. . . . . $3,075 $71,460 3.Operating income. . . . . . . . . . . . . . . . . . . . $1,350 $26,820 4.Interest expense. . . . . . . . . . . . . . . . . . . . . . $88 $2,020 5.Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . . 6.Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.Times interest earned. . . . . . . . . . . . . . . . . Requirements1.Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating the ratios in this exercise.2.Evaluate each company's long-term debt-paying ability (strong, medium, weak).1. Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. (Round your answers to two decimal places, X.XX. Enter amounts in millions as provided to you in the problem statement.) (In millions)Best Value CorporationModern Stores, Inc.1.Total assets. . . . . . . . . . . . . . . . . $15,256 $203,110 2.Total Stockholders' equity. . . . . . $3,075 $71,460 3.Operating income. . . . . . . . . . . . $1,350 $26,820 4.Interest expense. . . . . . . . . . . . . $88 $2,020 5.Leverage ratio. . . . . . . . . . . . . . .

ratio analysis is considered to be important part for in decision making decision making as it…

Answered: rporation Modern Stores, Inc. 1. Total…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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Related questions

Question

Examine the following selected financial information for

Best Value

Corporation and

Modern

Stores, Inc., as of the end of their fiscal years ending in

2018:

Data table

(In millions)	Best Value Corporation
1.	Total assets. . . . . . . . . . . . . . . . . . . . . . . . . .	$15,256	$203,110
2.	Total common stockholders' equity. . . . .	$3,075	$71,460
3.	Operating income. . . . . . . . . . . . . . . . . . . .	$1,350	$26,820
4.	Interest expense. . . . . . . . . . . . . . . . . . . . . .	$88	$2,020
5.	Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . .
6.	Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.	Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.	Times interest earned. . . . . . . . . . . . . . . . .

Requirements

1.	Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating the ratios in this exercise.
2.	Evaluate each company's long-term debt-paying ability (strong, medium, weak).

1. Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. (Round your answers to two decimal places, X.XX. Enter amounts in millions as provided to you in the problem statement.)

(In millions)	Best Value Corporation	Modern Stores, Inc.
1.	Total assets. . . . . . . . . . . . . . . . .		$15,256	$203,110
2.	Total Stockholders' equity. . . . . .		$3,075	$71,460
3.	Operating income. . . . . . . . . . . .		$1,350	$26,820
4.	Interest expense. . . . . . . . . . . . .		$88	$2,020
5.	Leverage ratio. . . . . . . . . . . . . . .