Calculating Leverage Ratios Tag Corp. reported the following amounts (in millions) in a recent Form 10-K. Total assets $111,383 Total liabilities 67,973 Total noncurrent liabilities 38,863 Total stockholders' equity 40,578 Total earnings 4,928 Interest expense 2,815 Net earnings before taxes and interest 10,150 Compute the following ratios. Note: Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425 a. Total liabilities-to-equity Answer b. Total liabilities-to-total assets Answer c. Times interest earned Answer

Calculating Leverage Ratios Tag Corp. reported the following amounts (in millions) in a recent Form 10-K. Total assets $111,383 Total liabilities 67,973 Total noncurrent liabilities 38,863 Total stockholders' equity 40,578 Total earnings 4,928 Interest expense 2,815 Net earnings before taxes and interest 10,150 Compute the following ratios. Note: Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425 a. Total liabilities-to-equity Answer b. Total liabilities-to-total assets Answer c. Times interest earned Answer

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter7: Introduction To Financial Statement Analysis

Section: Chapter Questions

Problem 22E

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Financial leverage MicrosoCortrepotied (MSFT) reported the following data (in millions) for a tern year Compute the profit margin, asset turnover, and financial leverage metrics using the expandedDuPont formula. Round profit margin, asset turnover, and financial leverage to two decimalplaces.Round return on stockholders’ equity to one decimal place.
Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for 20X3 it as follows (amounts in millions): Required: Next Level Compute the following for 20X3. Provide a brief description of what each ratio reveals about McCormick 1. return on common equity 2. debt-to-assets 3. debt-toequity 4. current 5. quick (McCormick uses cash and equivalents, short-term securities and receivables in their quick ratio calculation.) 6. inventory turnover days 7. accounts receivable turnover days 8. accounts payable turnover days 9. operating cycle (in days) 10. total asset turnover Use the following information for 14-17 and 14-18: The Hershey Company is one of the worlds leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hersheys consolidated balance sheets for 20X2 and 20X3 follow.
Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: Compare the values and trends of these ratios when evaluating Under Armours and Columbias short-term liquidity.
Calculate financial leverage measures The following information was availablefor the year ended December 31, 2013: Earnings before interest andtaxes (operating income) . . . . . $60,000Interest expense . . . . . . . . . . . . . . 10,000Income tax expense . . . . . . . . . . . 15,000Net income . . . . . . . . . . . . . . . . . . $ 35,000Total assets at year-end . . . . . . . . 200,000Total liabilities at year-end . . . . . . 120,000Required:a. Calculate the debt ratio at December 31, 2013.b. Calculate the debt/equity ratio at December 31, 2013.c. Calculate the times interest earned for the year ended December 31, 2013.
Data pertaining to the current position of Lucroy Industries Inc. follow:Cash $ 800,000Marketable securities 550,000Accounts and notes receivable (net) 850,000Inventories 700,000Prepaid expenses 300,000Accounts payable 1,200,000Notes payable (short-term) 700,000Accrued expenses 100,000Instructions1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios in parts b through j to one decimal place.2. List the following captions on a sheet of paper:Transaction Working Capital Current Ratio Quick RatioCompute the working capital, the current ratio, and the quick ratio after each of the…
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. are as follows: Cash $420,000 Marketable securities 167,500 Accounts and notes receivable (net) 340,000 Inventories 700,000 Prepaid expenses 40,000 Accounts payable 210,000 Notes payable (short-term) 230,000 Accrued expenses 280,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ b. Current ratio c. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $55,000. $…
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $435,000 Marketable securities 167,500 Accounts and notes receivable (net) 315,000 Inventories 700,000 Prepaid expenses 44,000 Accounts payable 180,000 Notes payable (short-term) 235,000 Accrued expenses 325,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $fill in the blank b. Current ratio fill in the blank c. Quick ratio fill in the blank 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio…
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Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $440,000 Marketable securities 185,000 Accounts and notes receivable (net) 305,000 Inventories 750,000 Prepaid expenses 40,000 Accounts payable 210,000 Notes payable (short-term) 250,000 Accrued expenses 295,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $fill in the blank 1 b. Current ratio fill in the blank 2 c. Quick ratio fill in the blank 3 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable…
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $430,000 Marketable securities 180,000 Accounts and notes receivable (net) 315,000 Inventories 700,000 Prepaid expenses 40,000 Accounts payable 220,000 Notes payable (short-term) 240,000 Accrued expenses 325,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ b. Current ratio c. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $80,000. $fill in the blank 4…

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bartleby, a Learneo, Inc. business

Total assets	$111,383
Total liabilities	67,973
Total noncurrent liabilities	38,863
Total stockholders' equity	40,578
Total earnings	4,928
Interest expense	2,815
Net earnings before taxes and interest	10,150

a. Total liabilities-to-equity	Answer
b. Total liabilities-to-total assets	Answer
c. Times interest earned	Answer