FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Data from the financial statements of Snoopy Co and Woodstock, Inc., two pet food chains are presented below. To the nearest hundredth, what is the 2021 debt-to-equity ratio for Snoopy, Co.?
Snoopy Co.
|
Woodstock, Inc.
|
|
Total liabilities, 2021 …......
|
$45,000
|
$25,000
|
Total liabilities, 2020 …......
|
55,000
|
20,000
|
Total assets, 2021 ……......
|
65,000
|
30,000
|
Total assets, 2020 …….......
|
68,000
|
32,000
|
Revenue, 2021 …………....
|
201,000
|
80,000
|
Net income, 2021 .......
|
2,300
|
1,100
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Ratio of Liabilities to Stockholders' Equity and Times Interest Earned Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands): Hasbro Mattel Liabilities: Current liabilities $1,617,859 $1,505,573 Long-term debt 1,588,067 2,580,439 Total liabilities $3,205,926 $4,086,012 Total stockholders’ equity $1,862,736 $2,407,782 Total liabilities and stockholders’ equity $5,068,662 $6,493,794 The operating income and interest expense from the income statement for each company were as follows (in thousands): Hasbro Mattel Operating income (before income tax expense) $692,489 $409,472 Interest expense 97,405 95,118 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro Inc. Mattel Inc.…arrow_forwardChallenge Industries has total assets of $122,200. If their total liabilities are $103,200, find the debt-to-equity ratio. (Round to the nearest hundredth and enter the complete ratio. Do not enter spaces. Example: enter '0.93:1')arrow_forwardDebt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.94 times at the end of 2018. If the firm's total debt at year-end was $10.60 million, how much equity does Trina's Trikes have? Multiple Choice $5.46 million $20.56 million $10.60 million $1.94 millionarrow_forward
- Want answer with calculationarrow_forward21. Kinsella Corporation's statement of financial position showed the following amounts: current liabilities, $75,000; total liabilities, $100,000; total assets, $200,000. What is the total long-term debt to total equity ratio? a.0.375 b.0.125 c.0.75 d.0.25arrow_forwardHere is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets Long-term assets $ 42,529 46,842 Current liabilities Long-term debt Other liabilities Equity $ 29,750 27,757 14,327 17,537 $ 89,371 Total $ 89,371 Total Locust has 662 million shares outstanding with a market price of $88 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the company's market value added. Note: Enter your answers in millions. Market value Market value added million millionarrow_forward
- Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. Total Assets Total Liabilities Total Equity $440,000 133,000 307,000 What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.) OA. 30.23% OB. 43.32% O C. 100.00% O D. 69.77%arrow_forwardThe following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses. Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $852,000 27,000 7,400 12,000 42,000 $3,006,000 1,944,000 1,062,000 940, 400 $ 121,600 VIRTUAL GAMING SYSTEMS Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Balance Sheets December 31 2021 $180,000 75,000 99,000 11,400 99,000 204,000 264,000 (63,000) $869,400 $ 60,000 4,800 12,000 279,000 294,000 219,600 2020 $138,000 54,000 129,000…arrow_forwardThe following data apply to the next six problems. Consider Fisher & Company's financial data as follows (unit: millions of dollars except ratio figures):Cash and marketable securities $100Fixed assets $280Sales $1,200Net income $358Inventory $180Current ratio 3.2Average collection period 45 daysAverage common equity $500 Calculate the amount of the long-term debt.(a) $134 (b) $500(c) $74 (d) $208arrow_forward
- 2.The Moon Company had net income in 2022 of AED 40 million. Here are some of the financial ratios from the annual report. Return on Assets = 5% Debt Assets Ratio = 55% Profit Margin = 4.5% Inventory in days = 20 days Using these ratios, calculate the following for the Remal Company: a) Salesb) Total assetsc) Total asset turnover d) Total debte) Stockholders' equity f) Return on equityg) Inventoryarrow_forwardPlz help this is all the information for this questionarrow_forwardThe following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Incorporated for the 2024 fiscal year. The following additional information from an analysis of Merry's financial position is available: Current ratio = 1.352272; Acid - test ratio = 0.5769817; Debt to equity ratio = 0.6063000. Required: Compute the missing amounts in the balance sheet. Note: Enter your answers in millions of dollars. Round your intermediate and final answers to the nearest whole dollar. MERRY INTERNATIONAL INCORPORATED Balance Sheet At December 31, 2024 ($ in millions) Assets Current assets \table[[Cash and cash equivalents,,510]. [Accounts and notes receivable]. [Inventory], [Other,, 460], [Total current assets], [Property and equipment, net,1,322,], [Intangible assets, net]. [Investments, 260,], [Notes and other receivables, net,1,276,].[Other assets, 1, 152,]. [Total long-term assets], [Total assets]. [Liabilities and Shareholders' Equity],…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education