Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Question
Chapter 1, Problem 1.1MAD
a)
To determine
To Compute: The ratio of liabilities to
b)
To determine
To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company A and Company B.
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Ratio of Liabilities to Stockholders’ Equity CompareAmazon.com to Best Buy Obj.6 Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. We will use Amazon as a continuing company exercise to reinforce the various tools and techniques for analyzing financial statements. We will begin with the ratio of liabilities to stockholders’ equity. Ratios can be used to compare companies in the same industry. For Amazon, there are a number of competitors that sell media, electronic, and other merchandise. Best Buy, Inc. (BBY) is one such company. The following total liabilities and stockholders’ equity information (in millions) is provided for Amazon and Best Buy for the end of a recent year:Amazon Best BuyTotal assets $64,747 $13,519Total liabilities 51,363 9,141Total stockholders' equity 13,384 4,378a. Compute the ratio of liabilities to stockholders' equity for each company. Round to two decimal places.b. What conclusions regarding the margin of protection to creditors…
Compare Amazon.com to Best Buy
Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. We will use Amazon as a continuing company exercise to reinforce the various tools and
techniques for analyzing financial statements. We will begin with the ratio of liabilities to stockholders' equity.
Ratios can be used to compare companies in the same industry. For Amazon, there are a number of competitors that sell media, electronic, and other merchandise. Best
Buy, Inc. (BBY) is one such company. The following total liabilities and stockholders' equity information (in millions) is provided for Amazon and Best Buy for the end of
a recent year:
Total assets
Total liabilities
Total stockholders' equity
a. Compute the ratio of liabilities to stockholders' equity for each company. Round to two decimal places.
Amazon
Best Buy
$420,549 $19,067
282,304
14,480
138,245
4,587
Liabilities to stockholders' equity ratio
Amazon
Best Buy
b. Which of the following indicates the level of…
Complete the common-size and common-base year financial statements [Income Statement (IS) and Balance Sheet (BS)] or Brady Corp. Include spark lines to easily show the trends. Write a brief analysis in the Excel worksheet of the main trends that you notice.
Perform the 3 step DuPont Return on Equity (ROE) analysis for Brady Corp. using cell references. Write a brief analysis from the DuPont analysis on Excel worksheet.
Chapter 1 Solutions
Corporate Financial Accounting
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Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Accounting equation Be-The-One is a motivational...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Statement of stockholders equity Using the income...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Prob. 1.5EXCh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Inspirational Inc. is a...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Statement of stockholders equity Financial...Ch. 1 - Income statement Inuring Services was organized on...Ch. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty was organized...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - A Financial statements Seth Feye established...Ch. 1 - Transactions, financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Prob. 1CPCh. 1 - Prob. 1.1MADCh. 1 - Analyze The Home Depot for three years The Home...Ch. 1 - Analyze Lowes for three years Lowes Companies,...Ch. 1 - Compare The Home Depot and Lowes Using your...Ch. 1 - Compare Papa Johns and Yum! Brands The following...Ch. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.2TIFCh. 1 - Prob. 1.4TIFCh. 1 - Net income On January 1, 20Y5, Dr. Marcie Cousins...Ch. 1 - Prob. 1.6TIF
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