FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Healthy Eating Lifestyle (HEL) Inc.'s financial data is provided below.
|
|
|
|
|
|
|
|
Current liabilities |
$ |
180 |
|
Income before interest and taxes |
$ |
125 |
|
10% Bonds, long-term |
|
360 |
|
Interest expense |
|
36 |
|
Total liabilities |
|
540 |
|
Income before tax |
|
89 |
|
Shareholders' equity |
|
|
|
Income tax |
|
27 |
|
Capital stock |
|
200 |
|
Net income |
$ |
62 |
|
|
|
280 |
|
|
|
|
|
Total shareholders' equity |
|
480 |
|
|
|
|
|
Total liabilities and equity |
$ |
1,020 |
|
|
|
|
|
Calculate HEL's times interest earned ratio is (Round your answer to two decimal places.). Show working.
Expert Solution
arrow_forward
Step 1
The time interest ratio is used to estimates the firms ability to meet out its debt obligation i.e interest expenses based on its operating profit.
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
- 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 Moraine Company has net income of $167,850. There are currently 32.65 days' sales in receivables. Total assets are $856,000, total receivables are $148,100, and the debt-equity ratio is .65. a. What is the company's profit margin? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the company's total asset turnover? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the company's ROE? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Profit margin b. Total asset turnover c. ROE % times %arrow_forwardExamine the following selected financial information for Best Value Corporation and Modern Stores, Inc., as of the end of their fiscal years ending in 2018: Data table (In millions) Best Value Corporation Modern Stores, Inc. 1. Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . $15,256 $203,110 2. Total common stockholders' equity. . . . . $3,075 $71,460 3. Operating income. . . . . . . . . . . . . . . . . . . . $1,350 $26,820 4. Interest expense. . . . . . . . . . . . . . . . . . . . . . $88 $2,020 5. Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . . 6. Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Times interest earned. . . . . . . . . . . . . . . . . Requirements…arrow_forward
- Whitten Corporation's balance sheet shows the following amounts: current assets, $200,000; current liabilities, $80,000; bonds payable, $155,000; and lease obligations, $25,000. Total stockholders' equity is $120,000. Calculate the debt to equity ratio. Round your answer to two decimal placesarrow_forwardSLM, Inc., with sales of $800, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Accounts receivable $ 200 Trade accounts payable $ 120 Inventory 360 Long-term debt 510 Plant 800 Equity 730 $ 1,360 $ 1,360 It earns 9 percent on sales (after taxes) and pays no dividends. Round your answers to the nearest dollar. Determine the balance sheet entries for sales of $1,400 using the percent of sales method of forecasting. Accounts receivable: $ Inventory: $ Trade accounts payable: $ Will the firm need external financing to grow to sales of $1,400? If Yes, calculate the amount of external funding required, if No, enter zero. , the amount of the external funds needed is $ . Construct the new balance sheet and use newly issued long-term debt to cover a financial deficiency, if any. SLM, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Accounts…arrow_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
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