Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier, debt to equity ratio, current liabilities to total debt ratio, interest coverage, and fixed charges coverage.
Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…
A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…
Q: Describe the Ratios that show how a firm uses debt financing?
A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…
Q: a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity
A: a. Ratio of fixed assets to long-term liabilities Fixed assets / Long-term liabilities = $793,900 /…
Q: Which ratio indicates the proportion of assets financed out of shareholders’ funds? (A) Debt equity…
A: Introduction: Any person, organization, or institution that owns stock in a company is a…
Q: Define Balance sheet ratios
A:
Q: What is the process to express leverage is in terms of the company's debt-to-equity ratio?
A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…
Q: Explain debt to equity ratio and how to calculate.
A:
Q: The leverage ratio is equal to average total __________divided by average _________________.a.…
A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…
Q: Mathematically define the dollar duration of equity.
A: The Dollar duration is measures in which the value of the dollar can change in the value of bonds…
Q: Define Debt-to-equity ratio
A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…
Q: calculate total equity
A: Total EQuity =Common Equity + Reserves + Preference Equity + Non Controllin Interest…
Q: Short-term creditors would probably most interested in which ratio? a. Current ratio c.…
A: Short-term creditors are mostly interested in liquidity ratios. It means the ability of the business…
Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…
A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…
Q: Explain an example how to calculate debt ratio.
A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…
Q: The current ratio is O a solvency measure that indicates the margin of safety for bondholders O…
A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…
Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…
A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…
Q: What does the debt to equity ratio shows, and how is it calculated?
A: Debt to equity ratio and its implication:The ratio of company’s total debt to the total…
Q: Calculate the debt ratio
A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…
Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of…
A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of…
Q: Debt to Total Assets Ratio can be improved by: A. Borrowing More, B. Issue of Debentures, C. Issue…
A: Debt to total assets ratio measures the proportion of total assets finance by creditors. it can be…
Q: For which of the following balance sheet items will the book value and market value most likely be…
A: The financial statements of a company consists of income statement and balance sheet. The balance…
Q: what is the meaning of debt-to-asset ratio?
A: Debt is the amount of liability which arises from past or present event for which a business is…
Q: How is leverage expressed in DuPont Ratio System? a) Total Debt / Equity b) Total Debt / Total…
A: Dupont ratio system is used to analysis the financial statements and assess its financial condition.…
Q: Explains the effect of debt on profit margin and return on assets (ROA).
A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…
Q: Which one of the following is the best indicator of long-term debt paying ability? A)Working…
A: Working capital turnover Working capital turnover is a ratio that measures how efficiently a company…
Q: The debt ratio is used primarily as a measure of: Short-term liquidity. Profitability.…
A: The debt ratio indicates the percentage of total assets financed by long term debts
Q: what are liquidity ratios, leverage ratios, profitability ratios, and market measure rat
A: Ratios are calculated in order to identify the ability of the company from various parameters.
Q: Which of the following financial measures are used to determine a company's credit rating? a)A…
A: Company's credit rating - is a rating which determines the credit worthiness of a company i.e., it…
Q: Which of the following is a Profitability Ratio a. Proprietary Ratio b. Debt-Equity Ratio c.…
A: The profitability ratio determines the ability of an entity to generate profits as a result of…
Q: Briefly describe the ratios that can be used to evaluate a company’s ability to pay long-term debt.
A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…
Q: What is the debt to total assets ratio?
A: Debt to Total asset Ratio: Debt to total asset ratio is the relationship between the Total…
Q: Help calculating the following ratios: return on equity current ratio quick ratio debt-to-equity…
A: ROE = Earning available to Equity shareholders * 100/ Equity shareholders fund Current Ratio =…
Q: QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total…
A: Debt ratings: Debt rating is a scoring method used to tell about the creditworthiness of debt.…
Q: The debt to equity ratio is calculated as a. Total assets / Total equity. b. Current liabilities /…
A: Debt to equity ratio: The ratio of company’s total debt to the total stockholders’ equity is known…
Q: Illustrate how the debt-to-equity ratio impacts the return on equity?
A: A high debt-equity ratio can be acceptable in light of the fact that it shows a firm can without…
Q: Compute for Leverage Ratio for year 2018 - 2020: a. Debt Ratio b. Debt to Equity Ratio c. Time…
A: Debt ratio is the ratio which measures how much total assets has been financed from the debts of the…
Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…
A: Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…
Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: State the significance and method of Debt to Equity ratio.
A: Debt-equity ratio- Significance and method:Debt-to-equity ratio analysis the relative contribution…
Q: Calculate Debt-to-equity Times interest earned Return on Financial leverage
A: Debt to equity=Outsiders' FundsShareholders' Funds 2019 2018 2017 2016 36,683,0008,573,000=4.28…
Q: Ratios that indicate relationships between deposits, borrowed funds and equity in financing loans…
A: Efficiency ratios are those ratios which assess the company's ability to generate revenue using the…
Q: What does the debt to equity ratio show, and how is it calculated?
A: The debt-to-equity (D/E) ratio is calculatedby dividing a company's total liabilities by its…
Q: The debt to equity ratio is calculated as Total assets / Total equity. Current liabilities / Total…
A: Debt to equity ratio:The ratio of company’s total debt to the total stockholders’ equity is known as…
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- ShafNita Sdn. Bhd. Statement of Financial Position as at 31 December2019 2020RM RM RM RM Non Current AssetsBuilding 100,000 100,000Fixtures less accumulated depreciation 3,600 4,000Van less accumulated depreciation 7,840 14,800111,440 118,800 Current AssetInventory 11,200 24,800Trade account receivable 12,800 16,400Bank 1,800 -Cash 440 400 26,240 41,600Total assets 137,680 160,400Finance by:Capital account:Balance at 1 January 74,080 105,080Add: Net profit for the year 70,400 42,320Cash introduced - 20,000144,480 167,400Less: Drawings (39,400) (43,200)105,080 124,200 Non Current LiabilitiesLoan (repayable in 10 years time) 20,000 30,000Current LiablitiesAccount Payable 12,600 6,012Bank overdraft - 188Retained earnings 32,600 36,200Total liabilities and equity 137,680 160,400 Additional information at 31 December 2020: Fixtures bought in 2020 cost RM800. Van bought in 2020 cost RM11,000. Required: Prepare statement of cash flow for ShafNita Sdn. Bhd. for the year ended 31 December…01/31/2019 01/31/2018 Total Revenue $514,405,000 $500,343,000 Cost of Revenue $385,301,000 $373,396,000 Gross Profit $129,104,000 $126,947,000 Research & Development $0 $0 Sales,General & Admin. $107,147,000 $106,510,000 Non-Recurring Items $0 $0 Other Operating Items $0 $0 Operating Income $21,957,000 $20,437,000 Earnings before interest and Tax $13,806,000 $17,453,000 Interest Expense $2,346,000 $2,330,000 Earnings before Tax $11,460,000 $15,123,000 Income Tax $4,281,000 $4,600,000 Minority Interest $0 $0 Equity Earnings -$509,000 -$661,000 Net Income-Cont. Operations $6,670,000 $9,862,000 Net Income $6,670,000 $9,862,000 Net Income Applicable to Common Shareholders $6,670,000 $9,862,000 Here is the income statement. PERIOD ENDING: 01/31/2019 01/31/2018 Current Asset Cash and Cash Equivalents $7,722,000…Metal tech Cash Account 31.12.2020 RS RS Balance B/D50Payment to suppliers2000 Equity share300Purchase of fixed asset200 Receipts from customer2800Overhead expenses200 Sale of fixed asset100Wages & Salaries100 Tax250 Dividend50 Repayment of loan300 Balance C/D150 3250 3250 Prepare a cash flow account for metal tech ending on 31.12.2020.
- Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).tion 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yield
- Year ended December 31, 2023 2022 2021 Revenues $4,578,041 $3,864,324 $3,003,610 Costs and expenses: Cost of goods sold $2,227,189 $2,089,089 $2,005,691 Selling and administrative 922,261 836,212 664,061 Interest 29,744 32,966 30,472 Other expenses (income) 1,475 2,141 (43) Total costs and expenses $3,180,669 $2,960,408 $2,700,181 Income before income taxes $1,397,372 $903,916 $303,429 Income taxes 229,500 192,600 174,700 Net income $1,167,872 $711,316 $128,729 Venus IndustriesConsolidated Balance Sheets (in thousands) December 31, ASSETS 2023 2022 Current assets: Cash and equivalents $291,284 $260,050 Accounts receivable, less allowance for doubtful accounts of $19,447 and $20,046 826,977 616,064 Inventories 592,986 512,917 Deferred income taxes 26,378 28,355 Prepaid expenses 40,663 32,977 Total current assets $1,778,288 $1,450,363 Property, plant, and equipment $571,032 $497,795 Less accumulated depreciation (193,037)…lf the net sales 330 000 lD ., other revenue and gains 170 000 lD., building 500 000 lD ., notes payable 120 000 lD., cost of purchases 150 000 lD ., other expenses and losses 150 000 lD., the net profit is:- 250 000 lD. 830 000 lD . 120 000 lD . 200 000 lD . no one .THE ATHLETIC ATTICIncome StatementFor the Year Ended December 31, 2024Net sales $8,900,000Cost of goods sold 5,450,000Gross profit 3,450,000Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000Net income $1,230,000 THE ATHLETIC ATTICBalance SheetsDecember 31 2024 2023Assets Current assets: Cash $164,000 Accounts receivable 790,000 Inventory 1,405,000 Supplies 110,000Long-term assets: Equipment 1,150,000 Less: Accumulated depreciation (420,000) Total assets $3,199,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $115,000 Interest payable 0 Income tax payable 40,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock 700,000…
- Balance sheet 2020 2021 Plots 80.000 98.000 Mechanical equipment 100.000 140.000 Accumulated depreciation machine. Equipment (25.000) (26.000) Commodities finished stock 25.000 33.000 Customers 45.000 17.000 Promissory notes receivable 30.000 20.000 Suppliers' advances 3.000 6.500 Cash resources 51.000 35.000 Total assets 309.000 323.500 Share capital 145.000 145.000 Results in re-employment 11.000 104.000 Long-term liabilities (same loan) 51.000 67.000 Suppliers 30.000 3.500 Cheques payable 70.000 1.000 Interest payable 2.000 3.000 Total own funds and liabilities 309.000 323.500 Profit and loss statement Sales 215.000 Cost of sales (67.000) Other operating expenses (16.000) Depreciation (14.000) Loss from the sale of mechanical equipment (3.000) Earnings before interest…BnB Construction Inc.Balance Sheet (Millions of Dollars) Assets 2021 Est 2020 2019 Liabilities 2021 Est 2020 2019 Cash and Cash Equivalents 15 10 15 Accounts payable 115 60 30 Short-Term Investments 10 0 65 Overdrafts 115 110 60 Accounts Receivable 420 375 315 Accruals 260 140 130 Inventories 700 615 415 Total Current Liabilities 490 310 220 Total Current Assets 1145 1000 810 Long -Term Bonds and New Loan 1300 754 580 Net Plant and Equipment 1884 1190 870 Total Debt 1790 1064 800 Preferred Stock 40 40 40 Common Stock 130 130 130 Retained Earnings 1069 956 710 Total Common Equity 1199 1086 840 Total Assets 3029 2190 1680 Total Liabilities and Equity 3,029 2,190 1,680 Included is the Income Statement. Requirements: 1. Calculate the EPS, DPS, and BVPS, and Cash…2021 2020 Usage sales 5700 5300 Other miscellaneous revenue for the financial year 300 200 Total revenue for the year 6000 5500 Cost of use sold 2680 2600 Customer and inventory impairment loss 250 220 GROSS REMUNERATION AND EMPLOYER'S CONTRIBUTIONS 800 750 Impairment provisions for the financial year 50 30 Financial costs for the financial year 300 280 Total operating expenses 900 800 Net profit for the financial year 4980 4680 Balance sheet data 1020 820 Fixed assets and investments 2000 1700 Goods 400 250 Customers minus accumulated impairment 696 1100 Customer promissory notes and bills of exchange 300 700 Cash and trading portfolio 200 350 Total assets 3596 4100 How long is the defensive period of the operation in 2021 (360days)