Balance sheet and income statement data indicate the following:Bonds payable, 10% (due in two years)Preferred 5% stock, $100 par (no change during year)Common stock, $50 par (no change during year)Income before income tax for yearIncome tax for yearCommon dividends paidPreferred dividends paidInterest expenseBased on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.2.463.070.415.07$868,000263,4002,167,800353,54081,447108,39013,17086,800

Times interest earned ratio = Earnings before interest and tax/Interest expense

Answered: Balance sheet and income statement data…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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How much is the monthly interest payment of National Co.?
Ratio of liabilities to stockholders equity intrest earned The following data were taken from the financial statements of Hunters Inc.for December 31 of two recent years: The income before income tax was $480,000 and $420,000 for the current and previous years,respectively. a. Determine the ratio of liabilities to stockholders equity at the end of each year.Round to one decimal place. b. Determine the times interest earned ratio for both years.Round to one decimal place. c. What conclusion can be drawn from these data as the company's ability to meet its currently maturing debts?
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,327,705 Income before income tax for year 443,320 Income tax for year 132,996 Interest payable 33,000 Interest receivable 19,000 Interest expense 79,662 Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.) Oa. 2.90 Ob. 6.57 Oc. 3.90 Od. 5.56
Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,082,526 Preferred 8% stock, $100 par (no change during the year) 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 414,083 Income tax for year 124,225 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented, what is the times interest earned ratio (round to two decimal places)? Oa. 2.35 Оb. 3.35 Oc. 4.78 Od. 5.78
The balance sheet of QUIGGE and get the end of the current fiscal year indicated the following bonds payable 8% $1 million preferred $10 stock $100 par 117,000 common stock $13 par 1,026,675 income before and come tax expense was $200,000 in income taxes for $30,350 for the current year cash dividends paid common stock during the current. Your total is $do 47,285 common stock with selling for $20 per share at the end of the year determine each of the following round answers to one decimal place, except for dollar amounts, which should be rounded to the nearest whole cent a. Times interest earned ratio. b. Earnings per share in common stock. c. Price earnings ratio. d. Dividends per share of common stock. e. Dividend yield.
Balance sheet and income statement data indicate the following: Bonds payable, 7% (due in 15 years) $850,550 Preferred 8% stock, $100 par (no change during the year) 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 379,777 Income tax for year 113,933 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented, what is the times interest earned ratio (round to two decimal places)?
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Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (40%) Net income Outstanding shares Earnings per share $ $ Issue Stock $1,584,000 $ $ Issue Bonds $1,584,000 140800 528,000
Assume the following information for both years: Net Profit Margin (NPM) was 4%. Interest on Long-term Debt 10% Times-Interest-earned was 5x All of the Net Income was retained and Market price for each share of common stock was as follows: January 1, 2008 - $1.253B December 31, 2008 - $1.14; January 1, 2007- $1.10; December 31, 2007 - $0.86 a. Use Altman Z-Score (for 2 years) to decide whether or not you would lend four million dollars to the above-mentioned company. Show all calculations supporting your conclusion.
Accounting Item Prior year Current year Accounts payable 8,191.00 7,813.00 Accounts receivable 6,005.00 6,798.00 Accruals 1,036.00 1,622.00 Cash ??? ??? Common Stock 10,961.00 12,712.00 COGS 12,797.00 18,122.00 Current portion long-term debt 4,914.00 5,086.00 Depreciation expense 2,500 2,842.00 Interest expense 733 417 Inventories 4,175.00 4,807.00 Long-term debt 13,319.00 14,034.00 Net fixed assets 51,854.00 54,984.00 Notes payable 4,372.00 9,863.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,779.00 29,650.00 Sales 35,119 47,875.00 Taxes 2,084 2,775 What is the firm's net income in the current year? (5547.00?) What is the firm's dividend payment in the current year?
Vishnu
please answer part d,e

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