The cash flow on total assets ratio is computed by dividing average total assets by operating income.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Financial statements are typically organized with time periods in the first row and items in the first column. However, since the items are the data fields we will need to ________ the financial statements for use in a pivot table.
a) sort b) transpose c) convert d) filter e) organize
After 14 grueling hours of deliberation, the jury ____ finally reached a verdict
A) has B) have
A clean-up crew is stationed at facility D and wants to take the shortest route to each site. They usually clean up facilities C, E, A and F on the same day and therefore want the shortest route from D to each facility
Recommend a route for the crew to leave from D, clean up each facility one after the other, and return to facility D. (Assume all paths are accessible.)
Gambino Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets: Cash$139,000 $190,000 Accounts receivable, net 206,000 180,000 Inventory 103,000 100,000 Prepaid expenses 95,000 90,000 Total current assets 543,000 560,000 Plant and equipment, net 999,000 970,000 Total assets$ 1,542,000 $ 1,530,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$109,000 $120,000 Accrued liabilities 44,000 50,000 Notes payable, short term 65,000 60,000 Total current liabilities 218,000 230,000 Bonds payable 220,000 220,000 Total liabilities 438,000 450,000 Stockholders' equity:
Common stock, $5 par value 350,000 350,000 Additional paid-in capital 60,000 60,000 Retained earnings 694,000 670,000 Total stockholders' equity 1,104,000 1,080,000 Total liabilities & stockholders' equity$ 1,542,000 $ 1,530,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,370,000 Cost of goods sold 860,000 Gross margin 510,000 Operating expenses 445,308 Net operating income 64,692 Interest expense 17,000 Net income before taxes 47,692 Income taxes (35%) 16,692 Net income$ 31,000 Required:a. What is the company's times interest earned ratio for Year 2?b. What is the company's debt-to-equity ratio at the end of Year 2?c. What is the company's equity multiplier at the end of Year 2? What will be an ideal response?