Please show work. Need assistance with Net debt as a percentage of total capitalization, interest...

80.2K

Verified Solution

Question

Accounting

Please show work. Need assistance with Net debt as a percentage of total capitalization, interest coverage and return on assets. Thank you
image
image
image
7/10 (Compare ratios and comment on results) Selected financial data for two intense competitors in a recent year follow (amounts in millions): Eonline Corporation Paperky Company $9,587 $4.732 8,067 4,152 572 130 530 181 26 9 153 92 Statement of income data: Net sales Cost of goods sold Selling and administrative expenses Interest expense Other expenses income taxes Net income Statement of cash flows data: Net cash inflow from operating activities Net increase in cash during the year Statement of financial position data End-of-year balances: $239 $168 $723 $348 110 26 $307 $427 Cash 991 1.953 Other current assets MacBook Air Cash $307 $427 Other current assets 1,953 991 5.592 3,641 $7852 $5.059 $1092 $809 4414 3.131 2346 1.119 $7852 $5,059 Long-term assets Total assets Current liabilities Long-term debt Total shareholders equity Total abilities and shareholders' equity Beginning-of-year balances Total assets Total shareholders equity Other data Average net receivables Average inventory $7.208 $4.582 1.738 1.048 $1.106 $656 804 508 (a) For each company, calculate the following ratios: (Round accounts receivable turnover, inventory turnover and current ratio te 2 decimal places, 3. 1482. Round net debt as a percentage of total capitalization to 2 decimal places, 63.0.83. Round average collection period, days to sell inventory, interest coverage, return on asset, return on equity, cash flows to total liabilitles, gross morgin and profit margin to 1 decimal place, es 14.8 or 13.5%) MacBook Air lv. v. vi. vil Net debt as a percentage of total capitalization Interest coverage (depreciation expense was $410 for online and $260 for Paperky) Return on assets Return on equity Cash flows to total liabilities Gross margin Profit margin vill. ix x Eonline Corporation Paperky Company 42.10 days 50.60 das Average collection period 36 4 days 147 day it. Days to sell inventory 2.07 1.75 Current ratio 0.73 0.70 iv. Net debt as a percentage of total capitalization 2.44 tim times 1.74 V. Interest coverage 9.15 X 1224 36 VE Return on assets MacBook Air

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students