At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets $ 2,287,500 $ 1,156,500 Total liabilities 871,500 565,500 Total equity 1,416,000 591,000 1. Compute the debt-to-equity ratios for both companies. 2. Which company has the riskier financing structure?
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At the end of the current year, the following information is available for both Pulaski Company and Scott Company.
Pulaski Company | Scott Company | |||||
Total assets | $ | 2,287,500 | $ | 1,156,500 | ||
Total liabilities | 871,500 | 565,500 | ||||
Total equity | 1,416,000 | 591,000 | ||||
1. Compute the debt-to-equity ratios for both companies.
2. Which company has the riskier financing structure?
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- At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets $ 860,000 $ 440,000 Total liabilities 360,000 240,000 Total equity 500,000 200,000 Required:1. Compute the debt-to-equity ratios for both companies.2. Which company has the riskier financing structure? Complete this question by entering your answers in the tabs below. Required 2 Compute the debt-to-equity ratios for both companies. Choose Numerator: / Choose Denominator: / Debt-to-Equity Ratio Pulaski Company / = Scott Company / =At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Scott Company Pulaski Company $ 860,000 360,000 $ 440,000 240,000 500,000 200,000 Total assets Total liabilities Total equity Required: 1. Compute the debt-to-equity ratios for both companies. 2. Which company has the riskier financing structure? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the debt-to-equity ratios for both companies. Pulaski Company Scott Company Choose Numerator: 1 Choose Denominator: 1 1 1 Debt-to-Equity Ratio 0 0 = =Finney Corporation has the following data as of December 31, 2018: Compute the debt to equity ratio at December 31,2018. Total Current Liabilities $36,210 Total Stockholders' Equity $ ? Total Current Assets 32,670 Other Assets 33,500 Long-term Liabilities 204,970 Property, Plant, and Equipment, Net 330,610
- The following information is available for both Pulaski Company and Scott Company at the current year-end. Pulaski Company $ 860,000 360,000 500,000 Total assets Total liabilities Total equity Scott Company $ 440,000 Required: 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the riskier financing structure? Required 1 Required 2 240,000 200,000 Complete this question by entering your answers in the tabs below. Pulaski Company Scott Company Compute the debt-to-equity ratio for both companies. Choose Numerator: / Choose Denominator: 1 1 1 Debt-to-Equity Ratio = =REQUIRED Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The time taken by the company to settle its debts with trade The amount of debt that the company uses to finance its The operational effectiveness of the company before considering interest income, interest expense and company tax. The percentage of the profit that has been put back into the What investors are willing to pay for the shares of the company with due consideration given to the profit generated by each share in the company. Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average provided in the additional information. INFORMATION The information given below was extracted from the books of Oslo Limited:…Compute the debt-to-equity ratio for each of the following companies. Which company appears to have a riskier financing structure? Atlanta Company Spokane Company Total liabilities $429,000 $ 549,000 Total equity 572,000 1,830,000
- listed below is that ACME toy Companty's liablities and owner's equity section from their financial statement. 1). What is the company's dept ratio and intrest debt ratio. 2).If the market value of the company is $50 million dollars, what is firm's debt to value ratio? Statement Liadlities Current liablitits AP 10000000 Currnt debt 2000000 Total current liablity 12000000 Long tearm Debt 55000000 Stock holder 16500000 Total 83500000Required:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:1- ROCE2- ROE3- Earnings per share4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest coverBarger Corporation has the following data as of December 31, 2024: Total Stockholders' Equity Total Current Liabilities Total Current Assets $ 36,210 58,200 181,630 Other Assets Long-term Liabilities Property, Plant, and Equipment, Net Compute the debt to equity ratio at December 31, 2024. (Round your answer to two decimal places, X.XX.) = = C $? 45,600 269,640 Debt to equity ratio
- Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…REQUIRED Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The time taken by the company to settle its debts with trade suppliers The amount of debt that the company uses to finance its assets The operational effectiveness of the company before considering interest income,interest expense and company tax. What investors are willing to pay for the shares of the company with due considerationgiven to the profit generated by each share in the company. Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average provided in the additional information. INFORMATION The information given below was extracted from the books of Oslo Limited: OSLO LIMITED STATEMENT OF COMPREHENSIVE…Glendale Ltd. reported the following selected data at December 31, 2021 and 2020: 2021 2020 Total assets $515,000 $529,000 Total liabilities 309,000 302,000 Interest expense 13,000 12,000 Income tax expense 25,500 22,500 Profit 85,000 75,000 Calculate Glendale Ltd.'s (a) debt to total assets and (b) interest coverage ratios for each of the years 2021 and 2020 and comment on any trends.