A.
Introduction: Times interest earned is calculated to know about the ability of the company to pay off its debt obligation. It reveals the capacity of the company to pay interest from income of the company.
To compute: Times interest earned for two years.
B.
Introduction:Times interest earned ratio is calculated to know about the ability of the organization to pay its debt obligation from the income earned.
To identify: Times interest earned ratio on a favorable or unfavorable trend.
C.
Introduction:Times interest earned is financial ratio which is calculated to know about the ability of the organization to complete its debt obligation from the income earned.
To identify:Current year’s times interest earned ratio of company S is better or worse than company G and company A.
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Loose Leaf for Financial Accounting: Information for Decisions
- 1. The annual net income of MAC Industries since 2005 is given below. Years t (since 2005) Net Income 1 4 6 12 15 $1,500 $2,500 $2,875 $2,850 $2,250 a. Create a scatter plot that includes your curve of best fit on top of the data. You should try several functions and make your choice based on best r-squared value. b. Find the year that Net Income was at its highest point. c. What was the income in that year?arrow_forwardThe following information was taken from the Netflix financial statements. For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflixs sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?arrow_forwardUse Apple’s financial statements to calculate the following ratios and summary measures for fiscal 2020 and 2019 (round to the nearest tenth). Indicate whether the ratio was more favorable in 2020 or 2019. Apple’s stock price was $115 per share on Sept. 30, 2020 and $55 on Sept. 30, 2019. Fiscal 2020 Fiscal 2019 Is the Ratio more favorable in 2020 or 2019? Return on Assetsarrow_forward
- An analyst is evaluating the profi tability of Daimler AG (Xetra: DAI) over a recentfi ve-year period. He gathers the following revenue data and calculates the followingprofi tability ratios from information in Daimler’s annual reports:2009 2008 2007 2006 2005Revenues (€ millions) 78,924 98,469 101,569 99,222 95,209Gross profi t margin 16.92% 21.89% 23.62% 20.60% 19.48%Operating profi t (EBIT) margin a–1.92% 2.77% 8.58% 5.03% 3.02%Pretax margin –2.91% 2.84% 9.04% 4.94% 2.55%Net profi t margin –3.35% 1.73% 4.78% 3.19% 2.37%aEBIT (Earnings before interest and taxes) is the operating profi t metric used by Daimler.Daimler’s revenue declined from 2007 to 2008 and from 2008 to 2009. Further,Daimler’s 2009 revenues were the lowest of the fi ve years. Management’s discussion ofthe decline in revenue and EBIT in the 2009 Annual Report notes the following:Th e main reason for the decline [in EBIT] was a signifi cant drop in revenuedue to markedly lower unit sales in all vehicle segments as a…arrow_forwardUse Apple’s financial statements to calculate the following ratios and summary measures for fiscal 2020 and 2019 (round to the nearest tenth). Indicate whether the ratio was more favorable in 2020 or 2019. Apple’s stock price was $115 per share on Sept. 30, 2020 and $55 on Sept. 30, 2019. Fiscal 2020 Fiscal 2019 Is the Ratio more favorable in 2020 or 2019? DAYS RECEIVABLE DAYS INVENTORY RETURN ON ASSETS PROFIT MARGIN % GROSS MARGIN % RETURN ON EQUITY CURRENT RATIO…arrow_forwarda. By what percentage did Mydeco’s revenues grow each year from 2013 to 2016? *Use the Data Table*arrow_forward
- Compare Delta to two of its competitors, JetBlue and Southwest, by answering the following questions. You do not need to calculate all of the ratios for JetBlue and Southwest, only the ones required to answer the questions below: How much bigger is Delta from each of its competitors, by Revenue, in each year from 2018-2022? Plot the Revenue number for each company for these years on a single line graph. Which company has the highest Net Income in each year from 2018-2022? Which company has the highest Net Profit Margin in 2018? In 2022? Which company is the most profitable based on Gross Profit percentage each year from 2018-2022? (This is a trick question.) Which company is best at using its short-term assets to pay off its short-term liabilities in 2019? Which company has the best cash ratio in 2019? Is it the same company that is best at using its short-term assets to pay short-term liabilities? If not, why do you think it's different? Which company is the most leveraged in 2022?arrow_forwardCategory of industry is real estate. The analysis of Quick Ratio is as follows: 2015: 2.78x 2016: 2.02x 2017: 2.35x 2018: 0.12x 2019: 0.26x a. What is the trend analysis for that Quick Ratio and why it is increasing and decreasing? b. Compare the ratio with the industry average.arrow_forwardComputing trend analysis Grand Oaks Realty’s net revenue and net income for the following five—year period, using 2015 as the base year, follow: Requirements Compute a trend analysis for net revenue and net income. Round to the nearest full percent. Which grew faster during the period, net revenue or net income?arrow_forward
- 1. Please calculate Starbucks Debt Ratio for each year. Do we want this ratio higher or lower? Did the company's performance improve or decline over that period? (Please show work and explain)arrow_forwarda. what are the debt to equity ratios at the beginning and the end of the 2018 fiscal business year? Has the ratio improved? If so, by how much? b. the restaurant has last cash at the end of the year than it had at the beginning, is that a bad thing? explain.arrow_forwardSelected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021-2015 ($ thousands) Sales 2021 Cost of goods sold $ 1,769 1,271 2020 $ 1,549 2019 2018 2017 2016 2015 $ 1,410 $ 1,292 $ 1,206 $ 1,121 $ 919 1,034 889 778 723 676 539 Gross profit 498 515 521 514 483 445 380 Operating expenses Net income 377 295 271 200 173 171 142 $ 121 $ 220 $ 250 $ 314 $ 310 $ 274 $ 238 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021-2015 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity 2021 2020 2019 2018 2017 2016 2015 $ 108 773 $ 142 812 $ 148 735 2,797 2,036 1,779 $ 151 564 1,499 $ 157 496 $ 155 $ 160 470 332 1,346 1,144 829 72 65 40 71 60 61 32 e B 220 220 220 220 3,422 3,409 2,982 1,683 $ 7,172 $ 6,464 $ 5,684 $ 4,188 $ 4,019 1,740 1,546 $ 3,596 $ 2,900 1,327 Current liabilities…arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College