In 2016, Natural Selection, a nationwide computer dating service, had $532 million of assets and $216 million of liabilities. Earning before interest and taxes were $136 million, interest expense was $29.5 million, the tax rate was 40 percent, principal repayment requirements were $25.6 million, and annual dividends were 35 cents per share on 22 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered

In 2016, Natural Selection, a nationwide computer dating service, had $532 million of assets and $216 million of liabilities. Earning before interest and taxes were $136 million, interest expense was $29.5 million, the tax rate was 40 percent, principal repayment requirements were $25.6 million, and annual dividends were 35 cents per share on 22 million shares outstanding. a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.) Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 2020, Natural Selection, a nationwide computer dating service, had $502 million of assets and $201 million of liabilities. Earnings before interest and taxes were $121 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $25 million, and annual dividends were 25 cents per share on 20 million shares outstanding. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Note: Round your answers to 1 decimal place. Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments?
d In 2020, Natural Selection, a nationwide computer dating service, had $514 million of assets and $207 million of Babies. Earnings before Interest and taxes were $127 million, interest expense was $28.5 million, the tax rate was 40 percent, principal repayment requirements were $24.7 million, and annual dividends were 25 cents per share on 20 million shares outstanding a. Calculate the following for Natural Selection: Note: Round your answers to 2 decimal places. Liabilities-to-equity ratio Times-interest-earned ratio Times burden covered b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover Note: Round your answers to 1 decimal place. Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments? % % %
MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 3%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.
MPI Incorporated has $6 billion in assets, and its tax rate is 35 %. Its basic earning power (BEP) ratio is 9 %, and its return on assets (ROA) is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. What is MPI's times - interest - earned (TIE) ratio? Round your answer to two decimal places.
In April 2013, General Electric (GE) had a book value of equity of $123.4 billion, 10.3 billion shares outstanding, and a market price of $20.55 per share. GE also had cash of $91.5 billion, and total debt of $394.7 billion. What was GE′s enterprise value? (Round to one decimal place.) I want answer within 2 hrs
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Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowance of $289 in 2020 and $280 in 2019 Req 1 In addition, the income statement reported sales revenue of $105,232 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $104,868 million. There could have been significant recoveries of accounts receivable previously written off. Required: 1. Compute the following ($ in millions): Req 2A 2020 a. The amount of bad debts written off by Green during 2020 (Hint. Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint. Treat it as a plug in the allowance for…
You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $800,000, accounts receivable = $1,600,000, inventory = $2,100,000, accrued wages and taxes = $570,000, accounts payable = $870,000, and notes payable = $670,000. Calculate Goodman Bees' net working capital. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Net working capital
You are evaluating the balance sheet for Goodman Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000. Calculate Goodman Bees' net working capital. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.)