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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT

The income statement and consolidated balance sheets for Front Row Entertainment follow.

Chapter 12, Problem 99.2C, CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The income statement and consolidated balance sheets for , example  1

Chapter 12, Problem 99.2C, CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The income statement and consolidated balance sheets for , example  2

Additional information:

• The market price of the common shares at the end of the W is $17.55 r share.

• The average number of common shares outstanding for 2020 is 16,400.

• The dividends are common share for 2020 were $25000. such is approximately $1.45 r share (S25.00W17.300 common shares). The 17.300 shares can be cakubtcd from information in Chapter 10(16.000 shares at Jan. I. 2020 + 2.000 shares issued on June IS. 2020 - 700 shares repurchased on July 10.2020).

• Common stock repurchases for 2020 were Shown. This is taken from Chapter 10 as 700 common shares repurchased as treasury stock at a cost of $16 r share.

• (ash flows used in operating activities for 2020 re ($77.783).

• Preferred dividends for 2020 re SO.

Now: Round all answers to two decimal places.

Chapter 12, Problem 99.2C, CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The income statement and consolidated balance sheets for , example  3

To determine

Introduction:

A Debt-management ratio is a ratio of a company’s debt to its total financing.

This ratio measures the part of a company’s operations that is financed by debt as compared to other forms of financing. It shows the relation between debt and total liabilities. A higher debt ratio is 0.6 or more.

The Debt-management ratio is classified into interest covered ratio, long-term debt to equity, debt to equity, long-term debt to assets, and debt to total assets ratio.

To compute:

The debt-management ratio.

Explanation

Interest covered ratio = opearting incomeinterest expense=$220302$98087=2.24

Long-term Debt to equity ratio = long-term debttotal equity=$1795470$329650=5.44

Debt to equity ratio = total liabilitiestotal equity=$2181317$329650=6

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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

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