Ratios Analyzing Long-Term Firm Solvency The following information is available for Percy Company: Annual Data 2013 Interest expense 2012 $185,000 $176,000 136,000 127,000 Income tax expense Net income 304,000 283,000 Capital expenditures 440,000 350,000 Cash provided by operating activities 247,000 223,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 $3,310,000 $2,900,000 1,900,000 Total liabilities Total stockholders' equity 2,200,000 Calculate the following: Note: Round all answers to two decimal places. a. 2013 debt-to-equity ratio. b. 2013 times-interest-earned ratio. c. 2013 operating-cash-flow-to-capital-expenditures ratio.

Ratios Analyzing Long-Term Firm Solvency The following information is available for Percy Company: Annual Data 2013 Interest expense 2012 $185,000 $176,000 136,000 127,000 Income tax expense Net income 304,000 283,000 Capital expenditures 440,000 350,000 Cash provided by operating activities 247,000 223,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 $3,310,000 $2,900,000 1,900,000 Total liabilities Total stockholders' equity 2,200,000 Calculate the following: Note: Round all answers to two decimal places. a. 2013 debt-to-equity ratio. b. 2013 times-interest-earned ratio. c. 2013 operating-cash-flow-to-capital-expenditures ratio.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.8E

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Ratios Analyzing Long-Term Firm SolvencyThe following information is available for Antler Company: Annual Data 2013 2012 Interest expense $118,000 $112,000 Income tax expense 233,500 215,000 Net income 526,500 425,000 Capital expenditures 320,000 400,000 Cash provided by operating activities 425,000 390,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total liabilities $2,230,000 $1,930,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places.a. 2013 debt-to-equity ratio.Answer b. 2013 times-interest-earned ratio.Answer c. 2013 operating-cash-flow-to-capital-expenditures ratio.Answer
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