HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
Dear Bartleby could you please calculate the debt equity ratio for the following, thank you. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.)
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:
WIPER INC.
Condensed Balance Sheets
December 31, 2020, 2019, 2018
(in millions)
2020
2019
2018
Current assets
$
650
$
900
$
700
Other assets
2,750
2,050
1,750
Total assets
$
3,400
$
2,950
$
2,450
Current liabilities
$
500
$
800
$
700
Long-term liabilities
1,500
1,000
800
Stockholders' equity
1,400
1,150
950
Total liabilities and stockholders' equity
$
3,400
$
2,950
$
2,450
WIPER INC.
Selected Income Statement and Other Data
For the year Ended December 31, 2020 and 2019
(in millions)
2020
2019
Income statement data:…
Based on the following information as of December 31,2020, compute the company’s debt-equity ratio. Assume current liabilities are all interest-bearing.
Round to nearest two decimal places.
Current assets: 15
Non-current assets: 12
Current Liabilities: 22
Non-current Liabilities: 4
Debt to Equity Ratio = ?
REQUIRED
Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following:
The time taken by the company to settle its debts with trade
The amount of debt that the company uses to finance its
The operational effectiveness of the company before considering interest income,
interest expense and company tax.
The percentage of the profit that has been put back into the
What investors are willing to pay for the shares of the company with due consideration
given to the profit generated by each share in the company.
Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average
provided in the additional information.
INFORMATION
The information given below was extracted from the books of Oslo Limited:…
Knowledge Booster
Similar questions
- Debt Management and Short-Term Liquidity Ratios The following items appear on the balance sheet of Figgins Company at the end of 2018 and 2019: Required: Between 2018 and 2019, indicate whether Figgins debt to equity ratio increased or decreased. Also, indicate whether Figgins current ratio increased or decreased. Interpret these ratios.arrow_forwardElegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.arrow_forwardRatio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callablearrow_forward
- Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown in random order as follows: Required: 1. Prepare a December 31, 2019, balance sheet for Baggett. 2. Compute the debt to-assets ratio.arrow_forwardFor Solar Industries and its related but separate financing company Solar Financing Corp. Required: a. Calculate the debt to equity ratio for 2019 and 2020. (Round the final answers to 2 decimal places.) Solar Industries (in millions) Solar Financing Corp (in millions) 2020 2019 2020 2019 Total Debt (A) 43,550 37,400 89,460 77,152 Total Equity (B) 21,202 24.655 9,170 8,154 2.06 1.52 9.76 9.47arrow_forwardReporting liabilities on the balance sheet and computing debt to equity ratio The accounting records of Pack Leader Wireless include the following as of December 31, 2018: Requirements Report these liabilities on the Pack Leader Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities. Compute Pack Leader Wireless’s debt to equity ratio- at December 31,2018.arrow_forward
- Presented here are summarized data from the balance sheets and Income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2019 $900 2,050 $2,950 2018 700 2020 Current assets other assets $ 650 2,750 $3,400 1,750 Total assets $2,450 Current liabilities Long-term 1iabilities Stockholders' equity $ 800 1,000 1,150 $2,950 $ 700 800 500 1,500 1,400 $3,400 950 Total liabilities and stockholders equity $2,450 WIPER INC. Selected Income Statement and Othe For the year Ended December 31, 2020 and 2019 (in millions) Data 2020 2019 Income statement data: Sales Operating income Interest expense Net income other data: Average number of common shares outstanding Total dividends paid $3,300 380 80 300 $2,900 300 70 230 44 42 50 30 Requlred: a. Calculate return on Investment, based on net Income and average total assets, for 2020 and 2019. b. Calculate return on equlty for 2020 and 2019. c. Calculate working capital and the current ratlo for each…arrow_forwardhow to find the Debt-to-total Asset Ratio Ratio for pepsi company for year 2019, 2020, 2021?arrow_forwardBethesda Mining Company reports the following balance sheet information for 2018 and 2019. The total debt ratio of 2018 and 2019?arrow_forward
- Reporting liabilities on the balance sheet and computing debt to equity ratio The accounting records of Compass Wireless include the following as of December 31, 2018: Requirements Report these liabilities on the Compass Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities. Compute Compass Wireless’s debt to equity ratio at December 31, 2018.arrow_forwardUse the table for the question(s) below. Consider the following balance sheet: Luther Corporation Consolidated Balance Sheet December 31, 2019 and 2018 (in $ millions) Assets 2019 2018 Liabilities and Stockholders' Equity 2019 2018 Current Assets Current Liabilities Cash 63.6 58.5 Accounts payable 87.6 73.5 Accounts receivable 55.5 39.6 Notes payable / short−term debt 10.5 9.6 Inventories 45.9 42.9 Current maturities of long−term debt 39.9 36.9 Other current assets 6.0 3.0 Other current liabilities 6.0 12.0 Total current assets 171.0 144.0 Total current liabilities 144.0 132.0 Long−Term Assets Long−Term Liabilities Land 66.6 62.1 Long−term debt 239.7 168.9 Buildings 109.5 91.5 Capital lease obligations −−− −−−…arrow_forwardREQUIRED Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: The time taken by the company to settle its debts with trade suppliers The amount of debt that the company uses to finance its assets The operational effectiveness of the company before considering interest income,interest expense and company tax. What investors are willing to pay for the shares of the company with due considerationgiven to the profit generated by each share in the company. Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average provided in the additional information. INFORMATION The information given below was extracted from the books of Oslo Limited: OSLO LIMITED STATEMENT OF COMPREHENSIVE…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College