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d. Ratio of liabilities to stockholders' equity: 20Y8 20Y7 20Υ6 20Y5 20Y4 2. Refer to the selected industry ratios provided above.

d. Ratio of liabilities to stockholders' equity: 20Y8 20Y7 20Υ6 20Y5 20Y4 2. Refer to the selected industry ratios provided above.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer part d with explanations thx
A Caiculator 20Υ8 20Υ7 20Υ6 20Y5 20Y4 Net income $1,221,900 $1,053,400 $885,200 $756,600 $641,200 Interest expense 415,400 379,200 327,500 249,700 198,800 Income tax expense 391,008 294,952 247,856 196,716 153,888 Total assets (ending balance) 6,470,085 6,787,405 4,907,289 5,073,781 3,847,617 Total stockholders' equity (ending 2,090,074 2,494,916 1,595,958 1,966,216 1,179,730 balance) Average total assets 6,628,745 5,847,347 4,990,535 4,228,151 3,589,744 Average stockholders' equity 2,292,495 2,045,437 1,781,087 1,572,973 1,373,019 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry.ratios have remained relatively steady at the following levels for the last five years: 20Y4-20Y8 Return on total assets 24.4% Return on stockholders' equity 50.1% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: a Return on total assets #3 24 % 7 9. 4. e y d j k m C
Transcribed Image Text:A Caiculator 20Υ8 20Υ7 20Υ6 20Y5 20Y4 Net income $1,221,900 $1,053,400 $885,200 $756,600 $641,200 Interest expense 415,400 379,200 327,500 249,700 198,800 Income tax expense 391,008 294,952 247,856 196,716 153,888 Total assets (ending balance) 6,470,085 6,787,405 4,907,289 5,073,781 3,847,617 Total stockholders' equity (ending 2,090,074 2,494,916 1,595,958 1,966,216 1,179,730 balance) Average total assets 6,628,745 5,847,347 4,990,535 4,228,151 3,589,744 Average stockholders' equity 2,292,495 2,045,437 1,781,087 1,572,973 1,373,019 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry.ratios have remained relatively steady at the following levels for the last five years: 20Y4-20Y8 Return on total assets 24.4% Return on stockholders' equity 50.1% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: a Return on total assets #3 24 % 7 9. 4. e y d j k m C
20Y4 d. Ratio of liabilities to stockholders' equity: 20Y8 20Υ7 20Y6 20Υ5 20Y4 2. Refer to the selected industry ratios provided above. Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a positive v direction years. Both measures have moved above v the industry average over the last two years. The cause of this change is driven Increase in earnings. ASUS 并 24 % & * 4. 6 8 9 е r t y u d h C V alt
Transcribed Image Text:20Y4 d. Ratio of liabilities to stockholders' equity: 20Y8 20Υ7 20Y6 20Υ5 20Y4 2. Refer to the selected industry ratios provided above. Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a positive v direction years. Both measures have moved above v the industry average over the last two years. The cause of this change is driven Increase in earnings. ASUS 并 24 % & * 4. 6 8 9 е r t y u d h C V alt
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