EBK CORPORATE FINANCE
11th Edition
ISBN: 8220102798878
Author: Ross
Publisher: YUZU
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Textbook Question
Chapter 2, Problem 8QP
Cash Flow to Creditors The 2014
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Central Bank has the following information (in $million).
2017
($ million)
2018
($ million)
Revenue
780
890
Net income
240
375
Assets
22,450
27,850
Equity
2,250
2,980
Which of the following statements about Central Bank is CORRECT?
Select one:
a.
From 2017 to 2018, its Return on Equity decreased, Return on Assets decreased, and Leverage Multiplier increased.
b.
From 2017 to 2018, its Return on Equity increased, Return on Assets increased, and Leverage Multiplier decreased.
c.
From 2017 to 2018, its Return on Equity increased, Return on Assets increased, and Leverage Multiplier increased.
d.
From 2017 to 2018, its Return on Equity increased, Return on Assets decreased, and Leverage Multiplier increased.
Dollarama reported the following selected data (in millions):
2017
2016
Total assets
$1,934.3
$1,863.5
Total liabilities
2,186.7
1,763.1
Profit
519.4
445.6
Income tax expense
196.3
166.8
Interest expense
39.9
33.0
(a)
Calculate the debt to total assets and interest coverage ratios for 2017 and 2016. Did Dollarama's solvency improve, worsen, or
remain unchanged in 2017? (Round answers to 1 decimal place, eg. 52.2 or 52.2%.)
2017
2016
Debt to total assets
Interest coverage
times
times
The Dollarama's solvency
Question Description
Use the table below to answer the questions.
2014
Sales
COGS
Interest
Depreciation
Cash
Accounts receivables
Current liabilities
Inventory
Long-term debt
Net fixed assets
Shareholder's equity
Taxes
$6,318
3.945
303
1,204
672
601
414
1,215
4,780
7,700
4,994
217
1. What is the change in net working capital from 2014 to 2015?
2. What is the net capital spending for 2015?
2015
$7,202
4,460
277
1,196
418
578
463
1,598
4,103
7,330
5.358
317
Chapter 2 Solutions
EBK CORPORATE FINANCE
Ch. 2 - Prob. 1CQCh. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Prob. 4CQCh. 2 - Prob. 5CQCh. 2 - Cash Flow from Assets Why is it not necessarily...Ch. 2 - Operating Cash flow Why is it not necessarily bad...Ch. 2 - Net Working Capital and Capital Spending Could a...Ch. 2 - Cash Flow to Stockholders and Creditors Could a...Ch. 2 - Prob. 10CQ
Ch. 2 - Building a Balance Sheet Sankey, Inc., has current...Ch. 2 - Building an Income Statement Shellon, Inc., has...Ch. 2 - Market Values and Book Values Klingon Cruisers,...Ch. 2 - Prob. 4QPCh. 2 - Calculating OCF Barrell, Inc., has sales of...Ch. 2 - Calculating Net Capital Spending Gordon Driving...Ch. 2 - Building a Balance Sheet The following table...Ch. 2 - Cash Flow to Creditors The 2014 balance sheet of...Ch. 2 - Cash. Flow to Stockholders The 2014 balance sheet...Ch. 2 - Prob. 10QPCh. 2 - Cash Flows Ritter Corporations accountants...Ch. 2 - Financial Cash flows The Stancil Corporation...Ch. 2 - Building an Income Statement During the year, the...Ch. 2 - Calculating total Cash Flows Schwert Corp. shows...Ch. 2 - Using Income Statements Given the .following...Ch. 2 - Prob. 16QPCh. 2 - Marginal versus Average Tax Rates (Refer to Table...Ch. 2 - Prob. 18QPCh. 2 - Accounting Values versus Cash Flows In Problem 18,...Ch. 2 - Calculating Cash Flows Cusic Industries had the...Ch. 2 - Prob. 21QPCh. 2 - Use the following information for Ingersoll, Inc.,...Ch. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Net Fixed Assets and Depreciation On the balance...Ch. 2 - Prob. 26QPCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MC
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