Business, 13.12.2019 22:31 majestyic1207

The balance sheet for shaver corporation reported the following: cash, $8,500; short-term investments, $13,500; net accounts receivable, $42,000; inventories, $47,000; prepaids, $13,500; equipment, $101,000; current liabilities, $47,000; notes payable (long-term), $77,000; total stockholders’ equity, $101,500; net income, $4,020; interest expense, $5,800; income before income taxes, $7,380.

compute shaver’s debt-to-assets ratio and times interest earned ratio.

Answers: 2

Show answers

Answers

Answer from: Tyrant4life

Debt/assets ratio = 0.575

TIER = 1.27 TIMES

Explanation:

The debt/asset ratio measures the proportion of debt to assets available to an organization.

The formula for calculating debt-to-assets is as follows:

Debt/assets ratio: Total Debt÷Total Assets

Lets add up total debts and total assets respectively and then divide them to get debt/assets ratio.

Total debts include, current liabilities, notes payable.

Total assets include, cash, net accounts receivable, inventories, prepaid, equipment.

Total debts = $47000+$77000

TD = $124000

Total Assets = $8500+$13500+$42000+$47000+$3500+$101000

TA = $215500

Debt/assets ratio = $124000÷$215500

Debt/assets ratio = 0.575

The interest cover/times interest earned ratio measures the number of times earnings before interest and tax covers the interest expense if they fall due.

Times interest earned ratio is calculated as follows;

Times interest earned ratio = EBIT ÷ INTEREST EXPENSE

TIER = $7380÷$5800

TIER = 1.27 TIMES

This means if interest expenses fall due the entity is able to pay them off 1.27 times.

Answer from: Damagingawsomeness2

1. Debt-to-assets ratio = Total debts/Total assets x 100

Debt-to-assets ratio = $124,000/$225,500 x 100

Debt-to-assets ratio = 54.99%

Total debts = $47,000 + $77,000 =$124,000

Total assets = $8,500 + $13,500 + $42,000 + 47,000 +$13.500 + $101,000

Total assets = $225,500

2. Times interest earned

= Earnings before interest and tax/Interest expense

= $7,380/$5,800

= 1.3 times

Explanation:

Debt-to-assets ratio is the ratio of total debts to total assets while times interest earned is the ratio of income before interest and tax to interest expense.

Answer from: Quest

answer; complain or request hazard correction from your employer;

Answer from: Quest

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%

Another question on Business

Business, 22.06.2019 01:30

Consider the following limit order book for a share of stock. the last trade in the stock occurred at a price of $50. limit buy orders limit sell orders price shares price shares $49.75 500 $49.80 100 49.70 900 49.85 100 49.65 700 49.90 300 49.60 400 49.95 100 48.65 600 a. if a market buy order for 100 shares comes in, at what price will it be filled? (round your answer to 2 decimal places.) b. at what price would the next market buy order be filled? (round your answer to 2 decimal places.) c. if you were a security dealer, would you want to increase or decrease your inventory of this stock? increase decrease

Answers: 2

Answer

Business, 22.06.2019 05:50

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

Answers: 3

Answer

Business, 22.06.2019 09:30

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false

Answers: 1

Answer

Business, 22.06.2019 17:00

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak

Answers: 2

Answer

You know the right answer?

The balance sheet for shaver corporation reported the following: cash, $8,500; short-term investme...

Questions