1.
Concept Introduction
Times Interest Earned: The Times interest earned by a corporation reveals its capacity for debt repayment. A higher time interest earned score indicates that there are sufficient funds left with a business after paying its obligations that the business can invest in.
To Compute: The time interest earned ratio of Company S for the current and the prior year.
2.
Concept Introduction
Times Interest Earned: The Time interest earned by a corporation reveals its capacity for debt repayment. A higher time interest earned score indicates that there are sufficient funds left with a business after paying its obligations that the business can invest in.
The position of Company S in regard to the time interest earned ratio.
3.
Concept Introduction
Times Interest Earned: The Time interest earned by a corporation reveals its capacity for debt repayment. A higher time interest earned score indicates that there are sufficient funds left with a business after paying its obligations that the business can invest in.
As compared to Company A and Company G whether the times interest earned ratio of Company S is better or worse.
Want to see the full answer?
Check out a sample textbook solutionChapter 9 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
- The following information was taken from the Netflix financial statements. For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflixs sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?arrow_forwardWhat is the comparison (analysis) of the Days Sales Outstanding of Industry Average Ratio and the Company A Ratio? The Days Sales Outstanding has decreased and increased. Why? Industry Average DSO 2015: 138 days 2016: 104 days 2017: 173 days 2018: 125 days 2019: 98 days Company A DSO 2015: 245 days 2016: 338 days 2017: 332 days 2018: 169 days 2019: 81 daysarrow_forward1. The annual net income of MAC Industries since 2005 is given below. Years t (since 2005) Net Income 1 4 6 12 15 $1,500 $2,500 $2,875 $2,850 $2,250 a. Create a scatter plot that includes your curve of best fit on top of the data. You should try several functions and make your choice based on best r-squared value. b. Find the year that Net Income was at its highest point. c. What was the income in that year?arrow_forward
- What is the return on assets for Samsung in the (a) current year and (b) prior year?arrow_forwardApple and Google report the following income statement data (some are assumed). Use the companies' service revenue and cost data to answer the requirements. $ millions Service revenue Cost of services Apple Google Current Year Prior Year Current Year $ 46,291 $ 39,748 $ 134,811 16,786 15,592 59,856 Required: 1. Compute the gross profit ratio for each of the two years shown for each company. 2. Is the change in Apple's current year gross profit ratio on its services favorable or unfavorable? Required 1 Required 2 Prior Year $ 116,461 50,661 3. Is the change in Google's current year gross profit ratio on its services favorable or unfavorable? 4. Does Google's current year gross profit ratio underperform or outperform the industry (assumed) average of 60%? Complete this question by entering your answers in the tabs below. Required 3 Required 4 Is the change in Google's current year gross profit ratio on its services favorable or unfavorable? The change in Google's current year gross…arrow_forwardWorking with the Takeaways throughout this chapter we have considered the financial statements of Apple Inc. and have undertaken select financial analysis using the Takeaways. Utilize these same tools to analyze the financial data of Logitech International, a manufacturer of computer peripherals. The following information was reported by Logitech in the company’s financial statements as of year-end March 31, 2017 and 2016.1. Calculate the return on sales ratio for each year and comment on Logitech’s profitability.2. Calculate the current ratio for each year and comment on Logitech’s liquidity.3. Calculate the debt-to-total-assets ratio for each year and comment on Logitech’s solvency. 4. Calculate the free cash flow for each year and comment on what this means for Logitech. 5. Apple’s fiscal year-end occurs near the end of September, whereas Logitech uses a March year-end. How might this affect a comparison of the financial results of the two companies?arrow_forward
- Create an appropriate graph to show the correlation between the total revenuegenerated by Tesco and the number of its stores over the last recorded fiveyears?arrow_forwardFind online the annual 10-K report for Costco Wholesale Corporation (COST) for fiscal year 2015 (filed in October 2015). a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. b. Verify the DuPont Identity for Costco's ROE. c. If Costco's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be? a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. The net profit margin is %. (Round to two decimal places.) The total asset turnover is (Round to two decimal places.) The equity multiplier is (Round to two decimal places.) b. Verify the DuPont Identity forCostco's ROE. The ROE is %. (Round to two decimal places.) c. If Costco's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be? The total assets turnover should be (Round to two decimal places.) The total asset turnover should be % (Round to two decimal places and…arrow_forwardIs Samsung’s current-year return on assets better or worse than that for (a) Apple and (b) Google?arrow_forward
- Activity Ratios Provide brief definition of what Activity ratios mean to the profitability of a company. What are the differences between Apple and Samsung in relationship to the ratios? See attached for ratios Total Asset Turnover Inventory Turnover Fixed Asset turnover Receivable Turnover 3. What does it mean to the company’s profitability? Is it good or bad?arrow_forwardDogarrow_forwardb. By what percentage did the net income grow each year? For example, revenues (increased or decreased) in 2013 x 10.02% however, cost of goods sold (declined or increased) by 7.70%. *Use the Data Table*arrow_forward
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,