Maurice Tutor
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How to get these answers?
American Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firmAc€?cs total debt-to-equity ratio.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).
Balance Sheet December 31, 2010
|
Cash and marketable securities |
$102,000 |
Accounts payable |
$287,000 |
|
Accounts receivable |
$299,000 |
Notes payable |
$61,200 |
|
Inventories |
$628,000 |
Accrued expenses |
$51,900 |
|
Prepaid expenses |
$10,300 |
Total current liabilities |
$400,100 |
|
Total current assets |
$1,039,300 |
Long-term debt |
$415,000 |
|
Gross fixed assets |
$1,502,000 |
Par value and paid-in-capital |
$376,000 |
|
Less: accumulated depreciation |
$312,000 |
Retained Earnings |
$1,038,200 |
|
Net fixed assets |
$1,190,000 |
Common Equity |
1,414,200 |
|
Total assets |
$2,229,300 |
Total liabilities and ownerAc€?cs equity |
$2,229,300 |
Income statement, Year of 2010
|
Net sales (all credit) |
$6,387,700.00 |
|
Less: Cost of goods sold |
$4,726,898.00 |
|
Selling and administrative expenses |
$345,000.00 |
|
Depreciation expense |
$148,000.00 |
|
EBIT |
$1,167,802.00 |
|
Interest expense |
$50,600.00 |
|
Earnings before taxes |
$1,117,202.00 |
|
Income taxes |
$446,880.80 |
|
Net income |
$670,321.20 |
Answer:
|
(57.64) |
% |
 |
|
Interest Coverage ratio (Times Interest Earned) |
||
Based on the information in the table, calculate the firmAc€?cs Interest Coverage ratio (also called Times Interest Earned). Canadian Bacon Inc. financial statements are presented in the table below.
Round the answers to two decimal places.
Balance Sheet December 31, 2011
|
Cash and marketable securities |
$143,000 |
Accounts payable |
$278,000 |
|
Accounts receivable |
$354,000 |
Notes payable |
$87,000 |
|
Inventories |
$672,000 |
Accrued expenses |
$65,000 |
|
Prepaid expenses |
$12,500 |
Total current liabilities |
$430,000 |
|
Total current assets |
$1,181,500 |
Long-term debt |
$284,000 |
|
Gross fixed assets |
$1,675,000 |
Par value and paid-in-capital |
$228,000 |
|
Less: accumulated depreciation |
$500,000 |
Retained Earnings |
$1,414,500 |
|
Net fixed assets |
$1,175,000 |
Common Equity |
1,642,500 |
|
Total assets |
$2,356,500 |
Total liabilities and ownerAc€?cs equity |
$2,356,500 |
Income Statement Year of 2011
|
Net sales (all credit) |
$3,136,600.00 |
|
Less: Cost of goods sold |
$2,195,620.00 |
|
Selling and administrative expenses |
$345,000.00 |
|
Depreciation expense |
$146,000.00 |
|
EBIT |
$449,980.00 |
|
Interest expense |
$45,300.00 |
|
Earnings before taxes |
$404,680.00 |
|
Income taxes |
$161,872.00 |
|
Net income |
$242,808.00 |
Answer: