FINAN&MANAGERIAL ACCT (LL)W/1TERM ACCESS
9th Edition
ISBN: 9781266178566
Author: Wild
Publisher: MCG
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Chapter 13, Problem 14QS
a.
To determine
Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.
To calculate: The debt-to-equity ratio.
b.
To determine
Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.
The days’ sales in inventory.
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Paddy's Pub reported the following year-end data:
Income before interest expense and income tax expense
Cost of goods sold
Interest expense
Total assets
Total liabilities
Total equity
Compute the (a) debt-to-equity ratio and (b) times Interest earned.
Complete this question by entering your answers in the tabs below.
Debt To Equity Times Interest
Ratio
Earned
Compute the debt-to-equity ratio.
Numerator:
1
1
Debt-To-Equity Ratio
Denominator:
II
Refer to the following selected financial information from a company. Compute the company’s debt-to-equity ratio for Year 2.
Year 2
Year 1
Net sales
$ 484,500
$ 427,450
Cost of goods sold
277,500
251,320
Interest expense
10,900
11,900
Net income before tax
68,450
53,880
Net income after tax
47,250
41,100
Total assets
319,500
295,200
Total liabilities
175,400
168,500
Total equity
144,100
126,700
Answer:
A. 1.22.
B. 1.82.
C. 3.36.
D. 0.82.
E. 2.22.
Assigning a Long-Term Debt Rating Using Financial Ratios
Refer to the information below from Stryker’s 2018 financial statements. Use the information to answer the requirements ($ millions).
Revenue
$13,601
Interest expense, gross
$181
Depreciation expense
306
Dividends, including to noncontrolling interest
717
Amortization expense
417
Cash and cash equivalents
3,616
Operating profit (EBIT)
2,537
Marketable securities
83
Total debt
9,859
Average assets
24,713
Cash from operating activities
2,610
CAPEX
572
Funds from operations
2,852
a. Compute the following 10 Moody’s metrics for Stryker for 2018.Round all answers (except Revenue) to one decimal place (example for percentage ratios: 0.2345 = 23.5%).
Ratio
Debt / EBITDA
Answer
EBITA to interest expense
Answer
Revenue ($ millions)
Answer
Retained Cash Flow / Net Debt
Answer
EBITA margin
Answer
Operating margin
Answer
FFO / Debt
Answer
(FFO + Interest Expense)/Interest Expense
Answer…
Chapter 13 Solutions
FINAN&MANAGERIAL ACCT (LL)W/1TERM ACCESS
Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 10QS
Ch. 13 - Prob. 11QSCh. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Prob. 15QSCh. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - Prob. 18QSCh. 13 - Prob. 19QSCh. 13 - Prob. 20QSCh. 13 - Prob. 21QSCh. 13 - Prob. 22QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Exercise 13-6 Common-size percents P2
Simon...Ch. 13 - Prob. 7ECh. 13 - Exercise 13-8 Liquidity analysis and...Ch. 13 - Exercise 13-9 Risk and Capital structure analysis...Ch. 13 - Exercise 13-10 Efficiency and Profitability...Ch. 13 - Exercise 13-11 profitability analysis P3 Refer to...Ch. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Problem 13-4A Calculation of financial statement...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Problem 13-6BAIncome statement computations and...Ch. 13 - Prob. 13SPCh. 13 - Prob. 1.1AACh. 13 - Prob. 1.2AACh. 13 - Prob. 1.3AACh. 13 - Prob. 2.1AACh. 13 - Prob. 2.2AACh. 13 - Prob. 2.3AACh. 13 - Prob. 3.1AACh. 13 - Prob. 3.2AACh. 13 - Prob. 3.3AACh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - ENTREPRENEURIAL DECISION A1 P1 P2 P3 BTN 13-7...
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