The following information is available for both Pulaski Company and Scott Company at the current year-end. Pulaski Company $ 2,282,000 Total assets Total liabilities. Total equity 877,000 1,405,000 Scott Company $ 1,151,000 571,000 580,000 Required: 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the riskier financing structure? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Which company has the riskier financing structure? Which company has the riskier financing structure? < Required 1

The following information is available for both Pulaski Company and Scott Company at the current year-end. Pulaski Company $ 2,282,000 Total assets Total liabilities. Total equity 877,000 1,405,000 Scott Company $ 1,151,000 571,000 580,000 Required: 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the riskier financing structure? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Which company has the riskier financing structure? Which company has the riskier financing structure? < Required 1

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

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Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of 75,000,000, and total assets of 169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for 20X3 it as follows (amounts in millions): Required: Next Level Compute the following for 20X3. Provide a brief description of what each ratio reveals about McCormick 1. return on common equity 2. debt-to-assets 3. debt-toequity 4. current 5. quick (McCormick uses cash and equivalents, short-term securities and receivables in their quick ratio calculation.) 6. inventory turnover days 7. accounts receivable turnover days 8. accounts payable turnover days 9. operating cycle (in days) 10. total asset turnover Use the following information for 14-17 and 14-18: The Hershey Company is one of the worlds leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hersheys consolidated balance sheets for 20X2 and 20X3 follow.
Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of 8,125,000, and total assets of 40,625,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
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 = =
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 = =
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. 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?
The balance sheet for Munoz Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity $ 235,000 762,000 $997,000 $160,000 457,000 617,000 380,000 $997,000 Required Compute the following. (Round "Ratios" to 1 decimal place.) ace Working capital Current ratio Debt to assets ratio
Ratio Analysis Trevor Corporation had $2,900,000 in total liabilities and $4,300,000 in total assets as of December 31. Trevor calculates that 40% of assets are designated as current, while $500,000 of Trevor's total liabilities are long-term. Required: Calculate Trevor's debt to assets ratio and its long-term debt to equity ratio. Round your answers to two decimal places. Debt to Total Assets Long-Term Debt to Total Equity
Total liabilities Total equity Atlanta Company Spokane Company Atlanta Company $670,000 690,000 Compute the debt-to-equity ratio for each of the above companies. Spokane Company Atlanta Company Spokane Company $ 407,100 1,928,000 Debt to equity ratio Choose Numerator: Choose Denominator: Which company appears to have a riskier financing structure? Debt-to-equity ratio
Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 110 510 Net working capital $ 620 a. Debt-equity ratio b Long-term debt-to-capital ratio C. d. Current ratio a. What is the company's debt-equity ratio? (Round your answer to 2 decimal places.) b. What is the ratio of total long-term debt to total long-term capital? (Round your answer to 2 decimal places.) c. What is its net working capital? d. What is its current ratio? (Round your answer to 2 decimal places.) Current liabilities Long-term debt Other liabilities Equity $ 65 275 80 200 $ 620
Calculate the following for Co. XYZ: a. Current ratio b. Debt ratio Assets: Cash and marketable securities $400,000 Accounts receivable 1,415,000 Inventories 1,847,500 Prepaid expenses 24,000 Total current assets $3,686,500 Fixed assets 2,800,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,712,500 Total assets $5,399,000 Liabilities: Accounts payable $600,000 Notes payable 875,000 Accrued taxes Total current liabilities $1,567,000 Long-term debt 900,000 Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,375,000 Selling and administrative expense 1,000,500 Depreciation expense 135,000 Interest expense Earnings before taxes $765,000 Income taxes Net income Common stock dividends $230,000 Change in retained earnings