The following financial statements apply to the next six problems, 13s.12-13s.18. Inland Manufacturing Balance Sheet (Dollars in millions) December 31, 2011, December 31, 2010 Cash $400 $300 Account receivables 560 450 | Inventory 790 550 Total current assets $1,750 $1,300 Total fixed assets 1,200 1,210 Total assets $2,950 $2,510 Inland Manufacturing Income Statement December 31, 2011 (continued) Account payable Note payable $350 $250 (Dollars in Millions) 470 330 Labor 850 Other current liabilities 220 130 Overhead 230 Total current liabilities $1,040 $710 Depreciation Gross profit 400 $1,710 Long-term debt Common equity Total liabilities and equity 580 580 $740 $1,330 $1,220 Selling expenses General and administrative expenses 40 $2,950 $2,510 60 $640 Eanings before interest and taxes (EBIT) Interest expenses Inland Manufacturing Income Statement December 31, 2011 (Dollars in Millions) 25 Earnings before income taxes Provision for income taxes (40%) Gross sales $2,450 $615 Cost of goods sold: 246 Materials $230 Net income $369
The following financial statements apply to the next six problems, 13s.12-13s.18. Inland Manufacturing Balance Sheet (Dollars in millions) December 31, 2011, December 31, 2010 Cash $400 $300 Account receivables 560 450 | Inventory 790 550 Total current assets $1,750 $1,300 Total fixed assets 1,200 1,210 Total assets $2,950 $2,510 Inland Manufacturing Income Statement December 31, 2011 (continued) Account payable Note payable $350 $250 (Dollars in Millions) 470 330 Labor 850 Other current liabilities 220 130 Overhead 230 Total current liabilities $1,040 $710 Depreciation Gross profit 400 $1,710 Long-term debt Common equity Total liabilities and equity 580 580 $740 $1,330 $1,220 Selling expenses General and administrative expenses 40 $2,950 $2,510 60 $640 Eanings before interest and taxes (EBIT) Interest expenses Inland Manufacturing Income Statement December 31, 2011 (Dollars in Millions) 25 Earnings before income taxes Provision for income taxes (40%) Gross sales $2,450 $615 Cost of goods sold: 246 Materials $230 Net income $369
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...
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Calculate the debt management ratios, that is, the debt and times-interestearned ratios.
(a) (1.22, 12.56) (b) (0.55, 26.60)
(c) (0.75,26.60) (d) (1.22, 22.55)
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