Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier, debt to equity ratio, current liabilities to total debt ratio, interest coverage, and fixed charges coverage.
Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…
A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…
Q: Describe the Ratios that show how a firm uses debt financing?
A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…
Q: a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity
A: a. Ratio of fixed assets to long-term liabilities Fixed assets / Long-term liabilities = $793,900 /…
Q: Which ratio indicates the proportion of assets financed out of shareholders’ funds? (A) Debt equity…
A: Introduction: Any person, organization, or institution that owns stock in a company is a…
Q: Define Balance sheet ratios
A:
Q: What is the process to express leverage is in terms of the company's debt-to-equity ratio?
A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…
Q: Explain debt to equity ratio and how to calculate.
A:
Q: The leverage ratio is equal to average total __________divided by average _________________.a.…
A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…
Q: Mathematically define the dollar duration of equity.
A: The Dollar duration is measures in which the value of the dollar can change in the value of bonds…
Q: Define Debt-to-equity ratio
A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…
Q: calculate total equity
A: Total EQuity =Common Equity + Reserves + Preference Equity + Non Controllin Interest…
Q: Short-term creditors would probably most interested in which ratio? a. Current ratio c.…
A: Short-term creditors are mostly interested in liquidity ratios. It means the ability of the business…
Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…
A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…
Q: Explain an example how to calculate debt ratio.
A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…
Q: The current ratio is O a solvency measure that indicates the margin of safety for bondholders O…
A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…
Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…
A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…
Q: What does the debt to equity ratio shows, and how is it calculated?
A: Debt to equity ratio and its implication:The ratio of company’s total debt to the total…
Q: Calculate the debt ratio
A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…
Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of…
A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of…
Q: Debt to Total Assets Ratio can be improved by: A. Borrowing More, B. Issue of Debentures, C. Issue…
A: Debt to total assets ratio measures the proportion of total assets finance by creditors. it can be…
Q: For which of the following balance sheet items will the book value and market value most likely be…
A: The financial statements of a company consists of income statement and balance sheet. The balance…
Q: what is the meaning of debt-to-asset ratio?
A: Debt is the amount of liability which arises from past or present event for which a business is…
Q: How is leverage expressed in DuPont Ratio System? a) Total Debt / Equity b) Total Debt / Total…
A: Dupont ratio system is used to analysis the financial statements and assess its financial condition.…
Q: Explains the effect of debt on profit margin and return on assets (ROA).
A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…
Q: Which one of the following is the best indicator of long-term debt paying ability? A)Working…
A: Working capital turnover Working capital turnover is a ratio that measures how efficiently a company…
Q: The debt ratio is used primarily as a measure of: Short-term liquidity. Profitability.…
A: The debt ratio indicates the percentage of total assets financed by long term debts
Q: what are liquidity ratios, leverage ratios, profitability ratios, and market measure rat
A: Ratios are calculated in order to identify the ability of the company from various parameters.
Q: Which of the following financial measures are used to determine a company's credit rating? a)A…
A: Company's credit rating - is a rating which determines the credit worthiness of a company i.e., it…
Q: Which of the following is a Profitability Ratio a. Proprietary Ratio b. Debt-Equity Ratio c.…
A: The profitability ratio determines the ability of an entity to generate profits as a result of…
Q: Briefly describe the ratios that can be used to evaluate a company’s ability to pay long-term debt.
A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…
Q: What is the debt to total assets ratio?
A: Debt to Total asset Ratio: Debt to total asset ratio is the relationship between the Total…
Q: Help calculating the following ratios: return on equity current ratio quick ratio debt-to-equity…
A: ROE = Earning available to Equity shareholders * 100/ Equity shareholders fund Current Ratio =…
Q: QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total…
A: Debt ratings: Debt rating is a scoring method used to tell about the creditworthiness of debt.…
Q: The debt to equity ratio is calculated as a. Total assets / Total equity. b. Current liabilities /…
A: Debt to equity ratio: The ratio of company’s total debt to the total stockholders’ equity is known…
Q: Illustrate how the debt-to-equity ratio impacts the return on equity?
A: A high debt-equity ratio can be acceptable in light of the fact that it shows a firm can without…
Q: Compute for Leverage Ratio for year 2018 - 2020: a. Debt Ratio b. Debt to Equity Ratio c. Time…
A: Debt ratio is the ratio which measures how much total assets has been financed from the debts of the…
Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…
A: Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…
Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: State the significance and method of Debt to Equity ratio.
A: Debt-equity ratio- Significance and method:Debt-to-equity ratio analysis the relative contribution…
Q: Calculate Debt-to-equity Times interest earned Return on Financial leverage
A: Debt to equity=Outsiders' FundsShareholders' Funds 2019 2018 2017 2016 36,683,0008,573,000=4.28…
Q: Ratios that indicate relationships between deposits, borrowed funds and equity in financing loans…
A: Efficiency ratios are those ratios which assess the company's ability to generate revenue using the…
Q: What does the debt to equity ratio show, and how is it calculated?
A: The debt-to-equity (D/E) ratio is calculatedby dividing a company's total liabilities by its…
Q: The debt to equity ratio is calculated as Total assets / Total equity. Current liabilities / Total…
A: Debt to equity ratio:The ratio of company’s total debt to the total stockholders’ equity is known as…
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- INCOME STATEMENT Year ended June 30 2022 2021 $'000 $'000Revenue 22450 18675Cost of sales 8475 8055Gross Profit 13975 10620Distribution costs 4245 3120Administrative expenses 1276 2134Selling expenses…Consider the information for AGL provided in the two tables below and answer the following questions. (Note: numbers in red are negative) Balance Sheet $'m cash Receivables Inventory Other assets Total Current Assets Inventory Financial Assets & Investments Plant Intangibles Other assets Total Non-Current Assets Total Assets Trade payables Borrowings Other liabilities Total Current Liabilities Debt Other liabilities Total non-current liabilities Total Liabilities Net Assets Issued Capital Reserves Retained earnings Total Equity 2021 88 1,889 418 1,280 3,675 46 950 6,283 3,302 1,194 11,775 15,450 1,838 305 832 2,975 2,880 4,089 6,969 9,944 5,506 5,601 20 (115) 5,506 2020 141 1,571 400 1,010 3,122 59 688 6,640 3,638 460 11,485 14,607 1,351 38 999 2,388 3,070 1,177 4,247 6,635 7,972 5,603 (80) 2,449 7,9722020 R0'000 2019 R0'000 ASSETS Non-current assets Property, plant and equipment 238,924 246,322 Right-of-use assets 3,246 3,479 Capital spares 566 487 242,736 250,288 Current assets Inventory 1,913 1.911 Trade and other receivables 15,249 5,118 Short term deposit 1,154 1,578 Cash and cash equivalents 1,543 1,883 19,859 10,490 TOTAL ASSETS 262,595 260,778 List all the fixed assets and categorize them in Tangible and Intangible Assets Using Notes to Accounts.
- Use the information below to answer questions 3, 4, 5 and 6. 2020 2021 Sales$5,300 $5,900 Depreciation750850COGS24002900Interest180196Cash200500Accts Receivables200400Notes Payable800550Long-term debt15001950Net fixed assets30003500Accounts Payable250400Inventory700900Dividend payout30%30%Tax rate35%30% What is the ROE for 2021?Income statement 2021 £,000 Sales 7000 Cost of sales -3000 Gross profit 4000 Administration and distribution expenses -1000 Interest payable -500 Dividend received 600 Profit before tax 3100 Taxation -1000 Profit after tax 2100 Balance Sheet 2021 2020 £'000 £'000 £'000 £'000 Assets: Non-Current Assets Property, plant and equipment 13000 10000 Investment 3000 3000 16000 13000 Current Assets Inventories 5500 5000 Trade receivables 2500 4500 Cash at bank 1000 9000 0 9500 Total Assets 25000 22500 Equity and Liabilities: Share capital 6000 5000 Share premium account 3000 2000 Retained earnings 3900 3000 12900 10000…Income Statement for the years ending 31 August: 2020 2019 £ £Revenue 950,000 975,000Cost of sales 455,000 460,000Gross profit 495,000 515,000Total expenses 320,000 310,000Net profit 175,000 205,000 Statement of financial position as at 31 August: 2020 2019£ £Non-current assets 70,000 65,000Current assetsCash at bank…
- 31-12 31-12 2019 2020 655 Alex & Co Alex & Co year Balance Sheet ($m) Current Assets Cash & Bank Deposits Trade Receivables Income Statement ($m) Sales Revenue [b] |- Cost of Goods Sold [c] 2020 3,149 -2,279 870 -337 883 86 151 236 289 277 416 26 Gross Profit Selling, General & Admin Costs - Other Operating Costs Depreciation Expense Profit before Interest & Tax |- Interest Expense |- Uncollectible Receivables + Other Operational Income - Other Operatinal Expense +/- Net Investment Income (Expense) 78 Inventories Prepaid Expenses Other Current Assets Non-Current Assets Plant, Machinery & Equipment, net Land & Buildings Other Non-Current Assets 33 -83 U L. -14 436 11 13 422 612 -35 241 375 -4 176 232 5 -6 Total Assets Current Liabilities Short-Term Bank Loans Trade Payables Interest Payable Corporate Tax Payable Accrued Expenses Other Current Liabilities Long-Term Liabilities Total Liabilities Owner's Equity Paid-in Capital [a] Equity Reserves Retained Earnings Current Period Profit…2020 2019 2018 $,000 $,000 $,000 EBIT -741,819 734,312 1,038,864 Depreciation 606,975 485,625 467,050 Tax 129,735 196,548 208,948 Operating Cash Flow -264,579 1,023,389 1,296,966 New fixed assets 14,836,508 14,884,523 14,986,813 Old fixed assets 14,884,523 14,986,813 14,236,644 Depreciation 606,975 485,625 467,050 Net Capital Spending 558,960 383,335 1,217,219 New current assets 10,347,686 6,922,405 6,504,962 Old current assets 6,922,405 6,504,962 7,898,431 New current liability 4,964,164 2,913,926 3,120,099 Old current liabilaty 2,913,926 3,120,099 3,485,129 Change in Net Working Capital 1,375,043 623,616 -1,028,439 Cash Flow From Assets -2,198,582 16,438 1,108,186 Briefly comment the free cash flow of this companyNew PhilHealth Contribution Table 2021 P10,000.00 P350.00 2021 3.50% P350.00 to P2,450.00 P10,000.01 to P69,999.99 P70,000.00 P2,450.00
- Year Net sales Costs of goods Depreciation Taxes paid Cash 2019 2020 10000 11000 5000 6400 1000 500 1000 600 10800 10700 Accounts receivable Inventory 1200 1500 Current liabilities 6500 5000 Net fixed assets 8700 9900 Please calculate the free cash flow in 2020 (keep zero decimal places). 2400 2300Question 5 -/1 View Policies Current Attempt in Progress Marigold Corp.reported the following items for 2019: $50000 Income tax expense Contribution margin 120000 Controllable fixed costs 80000 Interest expense 62000 Total operating assets 28000 How much is controllable margin? O $50000 O $30000 O $40000 O $120000EQUITIES AND LIABILITIES (in Rs. crore) SHAREHOLDER'S FUNDS 2019 2018 2017 Equity Share Capital 397.13 397.13 397.13 Reserves and Surplus 21,808.05 20,615.40 19,576.08 TOTAL SHAREHOLDERS FUNDS 22,205.18 21,012.53 19,973.21 NON-CURRENT LIABILITIES Long Term Borrowings 35.28 39.68 24.12 Deferred Tax Liabilities [Net] 216.06 372.16 458.36 Other Long Term Liabilities 36.45 8.35 8.94 Long Term Provisions 50.34 38.53 35.23 TOTAL NON-CURRENT LIABILITIES 338.13 458.72 526.65 CURRENT LIABILITIES Short Term Borrowings 0.00 0.00 0.00 Trade Payables 935.98 1,109.46 1,046.53 Other Current Liabilities 3,426.07 2,514.92 2,993.37 Short Term Provisions 85.37 91.05 87.08 TOTAL CURRENT LIABILITIES 4,447.42 3,715.43 4,126.98 TOTAL CAPITAL AND LIABILITIES 26,990.73 25,186.68 24,626.84 ASSETS NON-CURRENT ASSETS Tangible Assets 5,633.62 5,563.19 5,693.45 Intangible Assets 178.83 100.41 28.54 Capital Work-In-Progress 1,108.70 610.02 348.48 FIXED ASSETS 6,921.15 6,273.62 6,119.91 Non-Current Investments…