information and want to calculate the debt-to-equity ratio for the firm. Return on Equity: 23.87% Profit Margin: 13.81% Total Asset
Q: Exercise 10-6 (Algo) Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3,…
A: JOURNAL ENTRIES Journal Entry is the First stage of Process of Accounting. Journal is the Process…
Q: TB Problem 21-167 (Algo) The Murdock Corporation reported the following balance sheet data for 2021…
A: Cash flow statement is a financial statement that records cash inflow and cash outflow during the…
Q: Question: Prepare a reflection paper that incorporates your answers to the following independent…
A: 1. Ans. If a manager does not have basic accounting knowledge he won’t able to track profit or loss…
Q: Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using…
A: Total Present Value = $225,000 Down payment = 20% EMI = P x r x [(1+r)n / (1+r)n - 1]
Q: In Crane Company, direct labour is $19 per hour. The company expects to operate at 10,000 direct…
A: Direct labor means the amount paid to the worker who are directly engaged in the production of the…
Q: Joe Flynn visits his local bank to see how long it will take for $1,200 to amount to $2,100 at a…
A: Simple interest rates are quite simple because there is no compounding of interest and only there is…
Q: Income Statement Net sales Cost of goods sold Gross profit Operating expenses Interest Income before…
A: Activity ratio: It is a type of ratio a company calculates to determine its efficiency. It…
Q: Lusk Corporation produces and sells 14,000 units of Product X each month. The selling price of…
A: In accounting, the term "product cost" refers to the total expenses incurred when making and…
Q: Explain why profit should be reconciled to net operating cash flows. Give examples from this…
A: Profit is reconciled to Net operating cash flows to determine the actual cash flows from operations.…
Q: Calculate following ratios If you are not able to calculate with the given the information shown,…
A: Calculation of Net Profit Margin Net Profit / Total Revenue X 100 = For 2017 Net Profit = 4869…
Q: Statement 1: Adjusting entries affect cash flows in the current period. Statement 2: If all…
A: The adjustment entries are entries prepared at the end of the period to record the accrual expense…
Q: rouper Company began operations on January 1, 2018, and uses the average-cost method of pricing…
A: The question is based on the concept of Financial Accounting. Whenever any inventory valuation…
Q: Exercise 10-6 (Algo) Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3,…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: The difference between the monthly payments on a $120,000 mortgage at 6 ½% and at 8% for 25 years…
A: EMI = [P x r x (1+r)n / (1+r)n - 1] Present Value = $120,000 Time period = 25 years or 300 months
Q: rance carrier used by Sharma Kennels specifies 90% coinsurance. The company recently incurred…
A: The insurance is quite necessary now days because of huge risk involved today but by insurance some…
Q: Ernie owns a warehouse that is destroyed by fire on March 21, 2014. The warehouse, which had an…
A: Insurance is a contract between the insured and the insurer. There are two types of insurance…
Q: ) Larry wins $80,000 in the lottery. He invests the total amount in a GIC that earns him interest of…
A:
Q: Compute the break-even point in dollar sales for next year assuming the machine is installed.…
A: The contribution margin is calculated as difference between sales and variable costs. The…
Q: The balance sheet for Quinn Corporation is shown here in market value terms. There are 28,000 shares…
A: A share repurchase, also known as a stock buyback, enables a company to invest in itself. The…
Q: Statement 1: Goods displayed in the showroom are not part of the inventories. Statement 2: As…
A: Inventory refers to all goods that are produced and manufactured by a company. The inventory is sold…
Q: Prove the ending balances in these accounts at December 31 by listing the beginning balance and all…
A: Dividend: A dividend is a reward paid out of a company's net profits to the shareholders for…
Q: of $1 Wildcat, Inc. declared a 10% stock dividend when it had 250,000 share stock outstanding. The…
A: Shares outstanding before stock dividend = 250,000 shares Par value of a share = $1 Stock dividend =…
Q: Exercise 8-16 (Static) Record warranties over two years (LO8-5) Lindy Appliance begins operations in…
A: The date, the amount to be credited and debited, a brief description of the transaction, the…
Q: 1. After determining the total product cost of P100.00 per unit, Mr. Abecee the owner, decided to…
A: The question is based on the concept of Cost Accounting. Retail price is calculated by adding the…
Q: Which of the following will be debited in a closing entry? Withdrawals Depreciation Transportation…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: A company reissues 500 shares of treasury stock for $25 per share. The treasury stock was originally…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Marsha Terban bought a home for $119,000 with a down payment of $19,000. Her rate of interest is 12…
A: Explanation :
Q: You are provided with the following amounts for Diane Welsey for the current year: -Net employment…
A: Solution : Interest income = $5,500 Add: taxable amount of dividends= $ 2,640 Less: interest expense…
Q: 10) The ABC partnership has the following capital accounts on its books at December 31, 2017: Credit…
A: A partnership is a style of business in which two or more people formally agree to be co-owners,…
Q: Zebra Company reported the following outstanding share capital at year-end: ● 30,000 shares of 10%…
A: The question has asked to compute the dividend per share for ordinary shares, and, preference…
Q: Accounts Receivable has a balance of $30,000, and the Allowance for Bad Debts has a credit balance…
A: In order to increase the sales revenue, the business entities sold their goods on a credit basis.…
Q: Income statement information for Lucy Company is as follows: Sales $175,000 Cost of goods…
A: Vertical Analysis - Total Sales will be considered as 100% and other Income Statement items will…
Q: A firm has no debt but can borrow at 8 percent. The firm's WACC is currently 11 percent, and the tax…
A: Unlevered Firm :— It is the type of company that are all equity financed. There is no source of debt…
Q: R. Kudemus Co. and R. Ballgala Co. were competitors and both engaged in buying and selling of almost…
A: Lets understand the basics. Working capital is a capital required to run day to day business…
Q: 11. Bolsa Co. estimates that 60,000 special zipper will be used in the manufacture of industrial…
A: CALCULATION OF OPPURTUNITY COST Total amount invested = 60,000 special zipper X P6 per zipper…
Q: Information from the records of Conundrum Company for September was as follows: Sales $307,500…
A: Product cost includes all the direct and indirect expenses directly concerned with the product like…
Q: Bridgeport Company has hired a consultant to propose a way to increase the company's revenues. The…
A: Net Present Value :— It is the difference between present value of cash flows and initial capital…
Q: Note Your answers may differ from those offered below due to rounding error in all cases, select the…
A: Pariculars Actual units % of completion Equivalent units Completed during the period 4400 100%…
Q: Sylvestor Systems borrows $50,000 cash on May 15 by signing a 90-day, 8%, $50,000 note. 1. On what…
A: The note payable is treated as liability in the business. The note that matures in less than one…
Q: Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw…
A: The transactions are recorded in journal form as debit direct cost to work in process account and…
Q: Office supplies were P9,000 at the end of February and P11,600 at the end of March. During March,…
A: ANSWER The equation to calculate cash paid for office supplies expenses during March…
Q: Assume a company has two divisions, Division A and Division B. Division A has provided the following…
A: Transfer price means the price charged by one department from other department of the same company…
Q: Gee Hee Traders started operating in 2021. For the year ended 2021, the sales, purchases, and…
A: Solution We are given with the following information Sales = P500,000 Purchases = P200,000 Closing…
Q: A company anticipates there will be a demand for 20,000 copies of a certain book during the next…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Text World, Inc., reported sales revenue of $450,000, net income of $54,000, and average total…
A: Return on assets : Return on assets is a financial ratio which indicats that how mauch a company is…
Q: The following data relate to the overhead expenditure of a business at two activity levels. Square…
A: Overhead costs, commonly referred to as overhead or operating expenses, are those expenses incurred…
Q: 200,000 to product X, Y and Z based on the information using the four different method of…
A: Joint Costs - A joint cost is an expense that benefits more than one product and for which the…
Q: FACEBOOK INC. Consolidated Balance Sheet At December 31, $ millions Current assets Cash and cash…
A: Comparative financial statement means where the difference is taken between the figure of two years…
Q: Under US GAAP ABC Company has provided the following information related to its investment in…
A: Earnings earned through the change in the fair value of available-for-sales securities should be…
Q: Estimate both the variable costs per unit and the total monthly fixed costs using the high-low…
A: The high low method is way attempted by company to separate the fixed and variable costs from the…
You have access to the following information and want to calculate the debt-to-equity ratio for the firm.
Return on Equity: 23.87%
Profit Margin: 13.81%
Total Asset Turnover: 0.65
Answer as a DECIMAL using two decimal places.
Step by step
Solved in 2 steps
- Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldMeasures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldAssume you are given the following relationships for the Haslam Corporation: Calculate Haslam’s profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.
- The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:Grammatico Company has just completed its third year of operations. The income statement is as follows: Selected information from the balance sheet is as follows: Required: Note: Round answers to two decimal places. 1. Compute the times-interest-earned ratio. 2. Compute the debt ratio. 3. CONCEPTUAL CONNECTION Assume that the lower quartile, median, and upper quartile values for debt and times-interest-earned ratios in Grammaticos industry are as follows: How does Grammatico compare with the industrial norms? Does it have too much debt?Selected information for Berry Company is as follows: Berrys return on equity rounded to the nearest percentage point is: a. 20%. c. 28%. b. 21%. d. 40%.
- Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test, ratio Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE) Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share Trend analysis; comparative ratio analysis; benchmarking DuPont equation; window dressing; seasonal effects on ratiosRatios 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.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of $5,500,000 with a cost of capital of 10.5%. What is Skylers weighted average cost of capital?The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Refer to the information for Somerville Company on the previous pages. Also, assume that the price per common share for Somerville is 8.10. Required: Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)