Inc, published its financial statements for 2020. Assets: 1 000 million Equity: 1 000 million How much debt does XYZ Inc have for 2020? a. Cannot be determined b. less than 1 000 million C. 1 000 million d.more than 1 000 million
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- The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…Summer Beach Bar Ltd. reported its financial statements for 2020. Assets: 100 million USD Debt: 50 million USD How much equity does Summer Beach Bar Ltd. have in million USD ? a.50 b.150 c.100 d. oLOCKDOWN Corp. has the ending balances as December 31, 2020: Cash - 110,000 Fixed Assets - 155, 000; Current Liabilities - 124,000. Long Term Liabilities - 56, 670, Common Stock - 26,000, Retained Earnings - 58,330. Assume that the cost of debt is 10%, cost of common stock 13.50%, cost of retained earnings 12%. What is the cost of debt marginal weight? 68.18 50.20 60.89 Compute for the market value of the following securities: Debt - 10,000 @ 1150 Preferred stock - 55,000 @ 65 Common Stock 78,500 @ 65. The common stock compose of 30% retained earnings 18, 246,750 18, 246,000 18, 224, 750
- Some selected financial statement items belonging to PXR Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Receivables 18,500 Total Assets 120,000 Current Liabilities 42,000 total liabilities 75,000 Profit after Tax 15,000 Select one: a. The correct answer not available b. 0.205 c. 0.137 d. 0.150 e. 0.125ABC Co. financial data for 2020 & 2019 are given below: Total Assets Total Liabilities Cash Interest-bearing Debt Net Income Interest Expense Tax Expense Depreciation Expense Debt to Equity Ratio Interest Coverage Ratio 2020 2020 $925,000 667,000 36,000 527,000 169,000 9,500 21,000 44,500 2019 times $915,000 527,000 45,000 371,000 127,000 Calculate the debt to equity ratio and the interest coverage ratio using the select financial data provided above for 2019 & 2020. (Round answers to 2 decimal places, e.g. 15.25.) 5,900 18,600 38,500 2019 timesB. Working Capital = Current Assets - Current Liabilities 2021 = Working Capital $263,000 - $50,000 $213,000 2022 Working Capital = $347,000 $69,000 = $278,000 Current Ratio = Current Assets Current Liabilities 2021 2022 Current Ratio = $263,000 $50,000 $347,000 $69,000 = 5.3:1 5.0:1 Debt to Total Assets = Total Liabilities Total Assets 2021 2022 = $180,000 $382,000 $184,000 $487,000 = 47.1% 37.8% C. The working capital has increased between 2021 and 2022, indicating greater liquidity for the firm in its ability to pay its current liabilities as they become due. The current ratio has decreased between 2021 and 2022; however, it is still quite high. Note also that there is a substantial portion of the current assets in cash and accounts receivable, which may be converted into cash quickly (assuming the receivables are collectible). The company, therefore, should not have any problems in paying its current liabilities as they become due. The debt to total assets indicates the percentage…
- (Debt to equity, debt as a percentage of total capitalization, and interest coverage) The following financial information relates to Artscan Enterprises Inc. (amounts in thousands): 2018 2019 2020 Income before depreciation, amortization, interest, and taxes $1,598 $2,832 $3,618 Interest expense 165 318 419 Cash 51 105 239 Current liabilities (does not include any debt) 547 799 1,192 Bank loan payable (all long-term) 1,800 4,270 4,200 Shareholders' equity 4,593 6,030 6,835 (a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Net debt as a percentage of total capitalization Debt to equity ratio Interest coverage 2018 % % times 2019 times 2020 % % timesPresented below is the current liabilities section of Micro Corporation. ($000) 000 2021 000 2020 Current liabilities Notes payable $ 68,713 $ 7,700 Accounts payable 179,496 101,379 Compensation to employees 60,312 31,649 Accrued liabilities 158,198 77,621 Income taxes payable 10,486 26,491 Current maturities of long-term debt $416,592 $416,649 Total current liabilities $493,797 $251,489 Instructions Answer the following questions. a. What are the essential characteristics that make an item a liability? b. How does one distinguish between a current liability and a long-term liability? c. What are accrued liabilities? Give three examples of accrued liabilities that Micro might have. d. What is the theoretically correct way to value liabilities? How are current liabilities usually valued? e. Why are notes payable reported first in the current liabilities section? f. What might be the items that…The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows:2019 2020£ million £ millionEquity 2,460.8 1,732.8 Non-current liabilities (Loans) 640.0 800.0 Current liabilities 654.4 1,020.5 Non-current assets 2,804.8 2,367.2 Current assets 950.4 962.4 Revenue 1,601.6 1,509.6 Total expenses 1,444.0 1,492.8 Required:(a) Calculate the following financial ratios for the two years: 2019 and 2020:(i) Current ratio (ii) Capital gearing ratio (iii) Profit margin (b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020. (c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.
- A). Long term debt for zooey corporation in 2020 b.) total assets for zooey corporation in 2020 c.net fixed assets for zooey corporation in 2020Some selected financial statement items belonging to PXR Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Receivables 18,500 Total Assets in 2021 130,000 Current Liabilities 42,000 Total Assets in 2020 110,000 Profit before Tax 18,000 Tax 3,000 Select one: a. 0.125 b. 0.150 c. 0.205 d. 0.137Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. Assets Current assets Cash Accounts receivable Inventory Total Total assets 2020 Net plant and equipment $240,750 $310,600 a. Current ratio b. Quick ratio c. Cash ratio d. NWC ratio e. Debt-equity ratio e. Equity multiplier f. Total debt ratio f. Long-term debt ratio $8,850 $14,200 15,750 23,000 34,650 52,200 $ 59,250 $89,400 JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2021 300,000 400,000 2020 times times times % times times times times Liabilities and Owners' Equity Current liabilities 2021 Accounts payable Notes payable Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate the cash ratio for…
