(Debt to equity, debt as a percentage of total capitalization, and interest coverage) The following financial information relates to Artscan Enterprises Inc. (amounts in thousands): 2018 2019 2020 Income before depreciation, amortization, interest, and taxes $1,598 $2,832 $3,618 Interest expense 165 318 419 Cash 51 105 239 Current liabilities (does not include any debt) 547 799 1,192 Bank loan payable (all long-term) 1,800 4,270 4,200 Shareholders' equity 4,593 6,030 6,835 (a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Net debt as a percentage of total capitalization Debt to equity ratio Interest coverage 2018 times 2019 % times 2020 % times

(Debt to equity, debt as a percentage of total capitalization, and interest coverage) The following financial information relates to Artscan Enterprises Inc. (amounts in thousands): 2018 2019 2020 Income before depreciation, amortization, interest, and taxes $1,598 $2,832 $3,618 Interest expense 165 318 419 Cash 51 105 239 Current liabilities (does not include any debt) 547 799 1,192 Bank loan payable (all long-term) 1,800 4,270 4,200 Shareholders' equity 4,593 6,030 6,835 (a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Net debt as a percentage of total capitalization Debt to equity ratio Interest coverage 2018 times 2019 % times 2020 % times

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callable
During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Presented below are a number of balance sheet items for radiant, Inc. for the current year, 2020. Goodwill $ 126,520 Accumulated Depreciation-Equipment $ 292,470 Payroll Taxes Payable 179,111 Inventory 241,320 Bonds payable 301,520 Rent payable (short-term) 46,520 Discount on bonds payable 15,470 Income taxes payable 99,882 Cash 361,520 Rent payable (long-term) 481,520 Land 481,520 Common stock, $1 par value 201,520 Notes receivable 447,220 Preferred stock, $10 par value 151,520 Notes payable (to banks) 266,520 Prepaid expenses 89,440 Accounts payable 491,520 Equipment 1,471,520 Retained earnings ? Debt investments (trading) 122,520 Income taxes receivable 99,150 Accumulated Depreciation-Buildings 270,670 Notes payable (long-term) 1,601,520 Buildings 1,641,520 Prepare a classified balance sheet in good form. Common stock authorized was…
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Using the following information, prepare a properly classified Statement of Financial Position for Rabbi’s Company as of December 31, 2020 under: Report Form 1. ACCRUALS AND OTHER CURRENT LIABILITIES 125,890.00 2. BONDS PAYABLE 5,000,000.00 3. CASH AND CASH EQUIVALENTS 2,500,000.00 4. CURRENT INCOME TAX PAYABLE 589,660.00 5. INTANGIBLE ASSETS, NET 2,654,700.00 6. INVESTMENT IN ASSOCIATE 1,890,600.00 7. INVESTMENT IN PROPERTY 1,968,740.00 8. INVESTMENT IN EQUITY SECURITIES 3,650,000.00 9. LONG-TERM NOTES PAYABLE 2,000,000.00 10.MERCHANDISE INVENTORY 2,789,000.00 11.OFFICE AND STORE SUPPLIES 400,000.00 12.OTHER NON-CURRENT ASSET 600,000.00 13.OTHER NON-CURRENT LIABILITIES 750,000.00 14.OWNER’SEQUITY 18,211,250.00 15.PROPERTY PLANT AND EQUIPMENT NET 9,856,250.00 16.PREPAID EXPENSES 385,000.00 17.SHORT TERM NOTES PAYABLE 320,000.00 18.TRADE AND OTHER…
The following information pertains to Luna Company as at September 30, 2020:a. Notes payable – bank, P35,000b. Accounts payable arising from purchase of goods, P1,125,000c. Dividends in arrears on preference shares, not yet declared, P250,000d. Income tax payable, P134,000e. Accrued liabilities, P42,000f. Mortgage payable, P2,250,000g. Customers’ deposits, P89,000h. Reserve for contingencies, P250,000What is the total amount of liabilities that should be reported on Luna's statement of financial position as at September 30, 2020?