Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data Current Year Previous Year Interest expense $98,000 $82,000 Income tax expense 213,500 185,000 Net income 506,500 395,000 Capital expenditures 330,000 400,000 Cash provided by operating activities 435,000 390,000 Year-End Data Dec. 31, Current Year Dec. 31, Previous Year Total liabilities $2,200,000 $1,900,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places.
Ratios Analyzing Long-Term Firm Solvency The following information is available for Antler Company: Annual Data Current Year Previous Year Interest expense $98,000 $82,000 Income tax expense 213,500 185,000 Net income 506,500 395,000 Capital expenditures 330,000 400,000 Cash provided by operating activities 435,000 390,000 Year-End Data Dec. 31, Current Year Dec. 31, Previous Year Total liabilities $2,200,000 $1,900,000 Total stockholders' equity 4,000,000 3,600,000 Calculate the following: Note: Round all answers to two decimal places.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...
Related questions
Question
Ratios Analyzing Long-Term Firm Solvency
The following information is available for Antler Company:
Annual Data | Current Year | Previous Year |
---|---|---|
Interest expense | $98,000 | $82,000 |
Income tax expense | 213,500 | 185,000 |
Net income | 506,500 | 395,000 |
Capital expenditures | 330,000 | 400,000 |
Cash provided by operating activities | 435,000 | 390,000 |
Year-End Data | Dec. 31, Current Year |
Dec. 31, Previous Year |
---|---|---|
Total liabilities | $2,200,000 | $1,900,000 |
Total |
4,000,000 | 3,600,000 |
Calculate the following:
Note: Round all answers to two decimal places.
a. Current Year debt-to-equity ratio.
Answer
b. Current Year times-interest-earned ratio.
Answer
c. Current Year operating-cash-flow-to-capital-expenditures ratio.
Answer
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 now
This is a popular solution!
Step by step
Solved in 3 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.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,