Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 4-22 financial ratios (lo3) long-term debt

Problem 4-22 Financial Ratios (LO3) Long-term debt ratio Times interest earned Current ratico Quick ratio...

80.2K

Verified Solution

Question

Accounting

image

Problem 4-22 Financial Ratios (LO3) Long-term debt ratio Times interest earned Current ratico Quick ratio Cash ratio Inventory turnover Average collection period 0.4 1.0 0.6 5.0 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round Intermedlate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Tax (35% of income before tax) Net income 13.00 23.00 BALANCE SHEET (Figures in $ millions) This Year Last Year Cash and marketable securities 23 37 29 89 28 Accounts receivable Total current assets Net property, plant, and equipment Total assets Liabilities and shareholders equity S 30.00 S 25 40 65 23 29 Accounts payable Notes payable 35.00 Total current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equityS135.00 S

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