menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingCornerstones of Financial Accounting4th Edition

close solutoin list
Chapter 12, Problem 79E
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
Problem 1DQ
Problem 2DQ
Problem 3DQ
Problem 4DQ
Problem 5DQ
Problem 6DQ
Problem 7DQ
Problem 8DQ
Problem 9DQ
Problem 10DQ
Problem 11DQ
Problem 12DQ
Problem 13DQ
Problem 14DQ
Problem 15DQ
Problem 16DQ
Problem 1MCQ
Problem 2MCQ
Problem 3MCQ
Problem 4MCQ
Problem 5MCQ
Problem 6MCQ
Problem 7MCQ
Problem 8MCQ
Problem 9MCQ
Problem 10MCQ
Problem 11MCQ
Problem 12MCQ
Problem 13MCQ
Problem 14MCQ
Problem 15MCQ
Problem 16MCQ
Problem 17MCQ
Problem 18MCQ
Problem 19MCQ
Problem 20MCQ
Problem 21MCQ
Problem 22MCQ
Problem 23MCQ
Problem 24MCQ
Problem 25MCQ
Problem 26MCQ
Problem 27MCQ
Problem 28MCQ
Problem 29MCQ
Problem 30MCQ
Problem 31MCQ
Problem 32MCQ
Problem 33MCQ
Problem 34MCQ
Problem 35MCQ
Problem 36MCQ
Problem 37MCQ
Problem 38MCQ
Problem 39MCQ
Problem 40MCQ
Problem 41MCQ
Problem 42MCQ
Problem 43MCQ
Problem 44MCQ
Problem 45MCQ
Problem 46CE
Problem 47CE
Problem 48CE
Problem 49CE
Problem 50CE
Problem 51CE
Problem 52CE
Problem 53CE
Problem 54CE
Problem 55CE
Problem 56CE
Problem 57BE
Problem 58BE
Problem 59BE
Problem 60BE
Problem 61BE
Problem 62BE
Problem 63BE
Problem 64BE
Problem 65BE
Problem 66BE
Problem 67BE
Problem 68E
Problem 69E
Problem 70E
Problem 71E
Problem 72E
Problem 73E
Problem 74E
Problem 75E
Problem 76E
Problem 77E
Problem 78E
Problem 79E
Problem 80E
Problem 81E
Problem 82E
Problem 83E
Problem 84PSA
Problem 85PSA
Problem 86PSA
Problem 87PSA
Problem 88PSA
Problem 89PSA
Problem 90PSA
Problem 91PSA
Problem 92PSA
Problem 93PSA
Problem 84PSB
Problem 85PSB
Problem 86PSB
Problem 87PSB
Problem 88PSB
Problem 89PSB
Problem 90PSB
Problem 91PSB
Problem 92PSB
Problem 93PSB
Problem 94C
Problem 95.1C
Problem 95.2C
Problem 96.1C
Problem 96.2C
Problem 97.1C
Problem 97.2C
Problem 97.3C
Problem 97.4C
Problem 97.5C
Problem 97.6C
Problem 98.1C
Problem 98.2C
Problem 98.3C
Problem 99.1C
Problem 99.2C
Problem 99.3C
Problem 99.4C
Problem 99.5C
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

Debt Management Ratios

Refer to Steel’s financial statements in Exercise 12-76.

Required:

1. Compute the five debt management ratios for 2018 and 2019 (rounded to two decimal places).

2. CONCEPTUAL CONNECTION Indicate whether the ratios have changed and whether the ratios suggest that Steele is more or less risky for long-term creditors at December 31. 2019, than at December 31, 2018.

s

To determine

(a)

Introduction:

The debt management ratio tells the information of debts and equity that forms the capital structure of a firm. The debt management ratios help to calculate the proportion of debt in the capital structure.

To calculate:

The debt management ratio of Steele’s for 2018 and 2019.

Explanation

Time interest earned=Operating incomeInterest expense

Time interest earned for 2019 =$701,556$63,685

= 11.01

Time interest earned for 2018 =$788,698$62,398

= 12.63

Long−term Debt-equity ratio=long-term debtsTotal equity

Long-term debt equity ratio for 2019 =$650,000$2,441,293

= 0.26:1

Long-term debt equity ratio for 2018 =$541,639$2,267,617

= 0.23:1

Debt-equity ratio=Total liabilitiesTotal Equity

Debt-equity ratio for 2019 =$1,693,812$2,441,293

= 0.69:1

Debt-equity ratio for 2018 =$1,578,833$2,267,617

= 0

To determine

(b)

To indicate:

Whether the ratios have changed from 2018 to 2019 and suggest if the company is riskier for long-term creditors on 31st Dec 2019 than on 31st Dec 2018.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 12,
Problem 78E
Chapter 12,
Problem 80E
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 12 Solutions

Show all chapter solutions add
Ch-12 P-1DQCh-12 P-2DQCh-12 P-3DQCh-12 P-4DQCh-12 P-5DQCh-12 P-6DQCh-12 P-7DQCh-12 P-8DQCh-12 P-9DQCh-12 P-10DQ
Ch-12 P-11DQCh-12 P-12DQCh-12 P-13DQCh-12 P-14DQCh-12 P-15DQCh-12 P-16DQCh-12 P-1MCQCh-12 P-2MCQCh-12 P-3MCQCh-12 P-4MCQCh-12 P-5MCQCh-12 P-6MCQCh-12 P-7MCQCh-12 P-8MCQCh-12 P-9MCQCh-12 P-10MCQCh-12 P-11MCQCh-12 P-12MCQCh-12 P-13MCQCh-12 P-14MCQCh-12 P-15MCQCh-12 P-16MCQCh-12 P-17MCQCh-12 P-18MCQCh-12 P-19MCQCh-12 P-20MCQCh-12 P-21MCQCh-12 P-22MCQCh-12 P-23MCQCh-12 P-24MCQCh-12 P-25MCQCh-12 P-26MCQCh-12 P-27MCQCh-12 P-28MCQCh-12 P-29MCQCh-12 P-30MCQCh-12 P-31MCQCh-12 P-32MCQCh-12 P-33MCQCh-12 P-34MCQCh-12 P-35MCQCh-12 P-36MCQCh-12 P-37MCQCh-12 P-38MCQCh-12 P-39MCQCh-12 P-40MCQCh-12 P-41MCQCh-12 P-42MCQCh-12 P-43MCQCh-12 P-44MCQCh-12 P-45MCQCh-12 P-46CECh-12 P-47CECh-12 P-48CECh-12 P-49CECh-12 P-50CECh-12 P-51CECh-12 P-52CECh-12 P-53CECh-12 P-54CECh-12 P-55CECh-12 P-56CECh-12 P-57BECh-12 P-58BECh-12 P-59BECh-12 P-60BECh-12 P-61BECh-12 P-62BECh-12 P-63BECh-12 P-64BECh-12 P-65BECh-12 P-66BECh-12 P-67BECh-12 P-68ECh-12 P-69ECh-12 P-70ECh-12 P-71ECh-12 P-72ECh-12 P-73ECh-12 P-74ECh-12 P-75ECh-12 P-76ECh-12 P-77ECh-12 P-78ECh-12 P-79ECh-12 P-80ECh-12 P-81ECh-12 P-82ECh-12 P-83ECh-12 P-84PSACh-12 P-85PSACh-12 P-86PSACh-12 P-87PSACh-12 P-88PSACh-12 P-89PSACh-12 P-90PSACh-12 P-91PSACh-12 P-92PSACh-12 P-93PSACh-12 P-84PSBCh-12 P-85PSBCh-12 P-86PSBCh-12 P-87PSBCh-12 P-88PSBCh-12 P-89PSBCh-12 P-90PSBCh-12 P-91PSBCh-12 P-92PSBCh-12 P-93PSBCh-12 P-94CCh-12 P-95.1CCh-12 P-95.2CCh-12 P-96.1CCh-12 P-96.2CCh-12 P-97.1CCh-12 P-97.2CCh-12 P-97.3CCh-12 P-97.4CCh-12 P-97.5CCh-12 P-97.6CCh-12 P-98.1CCh-12 P-98.2CCh-12 P-98.3CCh-12 P-99.1CCh-12 P-99.2CCh-12 P-99.3CCh-12 P-99.4CCh-12 P-99.5C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Entries for uncollectible receivables, using allowance method Journalize the following transactions in the acco...

Accounting

What three roles can an accountant fill in relation to the AIS? Describe them.

Accounting Information Systems

Communication WBM Motorworks is a manufacturer of high-end touring and off-road motorcycles. On November 30, th...

Financial & Managerial Accounting

Effect of errors on adjusted trial balance For each of the following errors, considered individually, indicate ...

Corporate Financial Accounting

A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not effi...

Principles of Microeconomics (MindTap Course List)

(Evolution of the Firm) Explain how production after the Industrial Revolution differed from production under t...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Define private saving, public saving, national saving, and investment. How are they related?

Brief Principles of Macroeconomics (MindTap Course List)

A Bloomberg Businessweek North American subscriber study collected data from a sample of 2861 subscribers. Fift...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

ROE AND ROIC Baker Industriess net income is 24,000, its interest expense is 5,000, and its tax rate is 40%. It...

Fundamentals of Financial Management (MindTap Course List)

The cumulative frequency and cumulative relative frequency for a particular class interval are the sum of frequ...

Probability and Statistics for Engineering and the Sciences

Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find...

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

Define capacity. Why is it important for a manufacturing business or a service business?

Foundations of Business (MindTap Course List)

Would it be possible for a company to report negative free cash flow and still be highly valued by investors; t...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

The word persuasion turns some people off. What negative connotations can it have?

Essentials of Business Communication (MindTap Course List)

Name one economic interaction that isnt covered by the simplified circular-flow diagram.

Principles of Economics (MindTap Course List)

(Welfare Cost of Monopoly) Explain why the welfare loss of a monopoly may be smaller or larger than the loss sh...

ECON MICRO

The market for pizza has the following demand and supply schedules: Price Quantity Demanded Quantity Supplied 4...

Principles of Macroeconomics (MindTap Course List)

On September 12, 4,000 shares of Aspen Company were acquired at a price of 50 per share plus a 400 brokerage co...

Financial And Managerial Accounting

Briefly discuss three models for selling mobile ad impressions. What are the primary measures for the success o...

Fundamentals of Information Systems

Do you think that shadowing or joint problem solving would be a more effective way to share your tacit knowledg...

Fundamentals of Information Systems

What are three advantages of using views?

A Guide to SQL

What is metadata?

Database Systems: Design, Implementation, & Management

Discuss the similarities and differences between learning systems and neural systems. Give an example of how ea...

Principles of Information Systems (MindTap Course List)

Do you think Miller is out of options as he pursues his vendetta? If you think he could take additional actions...

Principles of Information Security (MindTap Course List)

What is a relational diagram? Give an example.

Database Systems: Design, Implementation, & Management

While discussing EGR valve diagnosis: Technician A says that if the EGR valve does not open, the engine may hes...

Automotive Technology: A Systems Approach (MindTap Course List)

List two types of canned cycles besides roughing turning and finish turning.

Precision Machining Technology (MindTap Course List)

What is the NSPEs Engineers Creed?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

The tapered cantilever beam AB shown in the figure has a solid circular cross section. The diameters at the end...

Mechanics of Materials (MindTap Course List)

Repeat Problem 2.2 with the following results of a sieve analysis: 2.2 Following are the results of a sieve ana...

Fundamentals of Geotechnical Engineering (MindTap Course List)

Identify several aspects of the culture shared by members of a group to which you belong. Are there any aspects...

Principles of Information Systems (MindTap Course List)

Using the framework presented in this chapter, draft a sample issue-specific security policy for an organizatio...

Management Of Information Security

How has the proliferation of mobile devices affected IT professionals?

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

According to Figure 5-20, is ii possible to completely separate one of the four materials from the other three?...

Solid Waste Engineering

Refer to Problem 2.C.1. Results of the sieve analysis for Soils A, B, and C are given below. To obtain a more r...

Principles of Geotechnical Engineering (MindTap Course List)

When a coil does not pick up, what are the probable causes?

Electric Motor Control

Adjustment factors for conductor ampacities must always be taken into consideration when (a) _____________ are ...

EBK ELECTRICAL WIRING RESIDENTIAL

(a) draw the free-body diagrams for the entire assembly (or structure) and each of its parts. Neglect friction ...

International Edition---engineering Mechanics: Statics, 4th Edition

A. An object is dropped from a height of 20 feet off the ground. What is its velocity when it hits the ground? ...

Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)

A W1835 of A992 steel has two holes in the tension flange for 3 4 -inch-diameter bolts. a. Assuming continuous ...

Steel Design (Activate Learning with these NEW titles from Engineering!)

Which of the following statements about drum brake shoes is not true? Web thickness varies only with changes in...

Automotive Technology

What elements are contained in the OS Dock?

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)

15.24 through 15.31 Determine the member end moments and reactions for the frames shown in Figs. P15.24P15.31 b...

Structural Analysis

What kind of ticket is held by Kerbeross TGS?

Network+ Guide to Networks (MindTap Course List)

bartleby
© bartleby 2019