I need help to determine the following; 4. For P & B Manufacturing to assess its debt management I need help to calculate the debt-to-equity ratio at the end of the year AND the equity multiplier. Include calculations and round answers to 2 decimal places. Current assets:Cash and cash equivalentsAccounts ReceivableInventoryTotal current assetsProperty, plant and equipmentLess accumulated depreciationNet property, plant and equipmentTotal assetsCurrent liabilities:Accounts payableAccrued liabilitiesIncome taxes payableTotal current liabilitiesP & B ManufacturingComparative Balance Sheet(dollars in millions)Bonds payableTotal liabilitiesStockholders' equity:Common stockRetained earningsAssetsEnding BalanceLiabilities and Stockholders' EquityTotal stockholders' equityTotal liabilities and stockholders' equity655306001,1951,7196401,0792,27418094723461805268009481,7482,274Beginning Balance915725801,2431,6564801,1762,419180105883733106838009361,7362,419P & B ManufacturingIncome StatementFor Year Ended December 31(dollars in millions)SalesCost of goods soldGross MarginSelling and administrative expensesNet operating incomeNonoperating items: Gain on sale of equipmentIncome before taxesIncome taxesNet Income4,4503,550900820804842955P & B Manufacturing also provided the following information:1 The company sold equipment that had an original cost of $15 million andaccumulated depreciation of $9 million. The cash proceeds from the sale were$11 million. The gain on the sale was $4 million.2The company did not issue any new bonds during the year3The company paid a cash dividend during the year4 The company did not complete any common stock transactions during theyear 4a4bTo assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round yourcalculations & answers to 2 decimal placesCalculate Debt-to-Equity ratioCalculate Equity multiplier

Ratios provide a way to compare a company's financial performance to its industry peers,…

To assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places Calculate Debt-to-Equity ratio Calculate Equity multiplier

To assess debt management calculate Debt-to-Equity ratio at the end of the year and Equity Multiplier. Round your calculations & answers to 2 decimal places Calculate Debt-to-Equity ratio Calculate Equity multiplier

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.9E

See similar textbooks

Similar questions

Current assets: Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment, net Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Unearned revenue Short-term debt Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 par value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity $ 48,844 51,713 22,926 4,106 35,230 162,819 105,341 37,378 32,978 $ 338,516 $ 46,236 43,700 5,522 10,260 105,718 91,807 50,503 248,028 1 45,173 45,314 90,488 $ 338,516
Assets Current assets Cash and cash equivalents Accounts receivable, net Supplies Other current assets Total current assets Property and equipment Accumulated depreciation Net property and equipment Goodwill Deferred charges Other Total assets Liabilities and equity Current liabilities Accounts payable Accrued liabilities Current maturities of long-term debt Total current liabilities Operating lease liabilities non-current Long-term debt Other non-current liabilities Total liabilities Total liabilities Common stock Cummulative dividends Retained earnings Other Total equity Total liabilities and equities Revenue, net Operating charges Salaries, wages, and benefits Other operating expenses Supplies expense Depreciation and amortization Lease and rental expense Total operating charges Income from operations Interest expense, net Other (income) expense, net Income before income taxes Provision for income taxes Net income $61,268 1,560,847 Cost of debt (%) Cost of equity (%) Weighted…
Comparative Balance Sheet Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable. Total current liabilities. Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Ending Balance $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 13,000 52,000 67,000 132,000 76,000 208,000 Beginning Balance $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 28,000 26,000 67,000 73,000 95,000 99,000 $ 303,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or…
Common-size Balance Sheet. Explain what it is and why it is used inbusiness. Prepare common-size balance sheet for Target with the infoprovided below. Assets CashAccounts receivableInventoryOther current assetsTotal current assetsGross plant and equipmentAccumulated depreciationNet plant and equipmentLong-term investmentsGoodwill, trademarks, andother intangible assetsTotal assets $ Dec 31, 2022$20,2684,8733.2772,886$31,304$25,032-10,065$14,96711,512 32,272 $90,055
ASSETS Cash Accounts receivable, net Inventories Prepaid and other current assets Total current assets Restricted cash Accounts receivable, net, non-current Property, plant and equipment, net Operating lease right-of-use assets Other assets Total assets LIABILITIES AND EQUITY (DEFICIT) Accounts payable Accrued liabilities Deferred revenue Current portion of long-term debt Other current liabilities Total current liabilities. Long-term debt, net of current portion Operating lease liabilities, net of current portion Other long-term liabilities. Total liabilities Equity (Deficit) Class A common stock, par value $0.0001 and 124,785,562 shares issued and outstanding at December 31, 2022 and 119,280,781 shares issued and outstanding at December 31, 2021 Class B common stock, par value $0.0001 and 268,823,501 shares issued and outstanding at December 31, 2022 and 269,243,501 shares issued and outstanding at December 31, 2021 Additional paid-in-capital Accumulated other comprehensive income…
Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities. Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 Pre-tax Earnings 1,200 1,750 3,000 4,750 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes (25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1. What is the company's MVA? 2. What is the company's EVA in? 3. What is the current ratio of the Company? 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% 2020 4,800 3,710 180 470 440 40 400 100 7 293
Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Other Total current assets Property and equipment: Land Building and equipment (net) Total long-term assets Total assets 1. Calculate the average total assets. 20X1 20X2 $2,875,000 $2,580,000 800,000 700,000 939,776 690,000 490,000 260,000 93,000 74,261 $5,197,776 $4,304,261 $1,575,000 $1,067,315 1,348,800 1,150,000 $2,923,800 $2,217,315 $8,121,576 $6,521,576
Illies Corporation's comparative balance sheet appears below: Beginning Balance Assets: Current assets Cash and cash equivalents. Accounts receivable. Inventory. Total current assets Property, plant, and equipment. Less accumulated depreciation. Net property, plant, and equipment. Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Accrued wages and salaries payable.. Accrued income taxes payable. Notes payable. Total current liabilities. Long-term debt. Deferred income taxes. Total liabilities Stockholders' equity: Common stock. Retained earnings. Ending Balance Select one: $ 40,000 19,000 O a. $7,000 O b. $40,000 O c. $29,000 O d. $33,000 67,000 126,000 123,000 358,000 339,000 156,000 132,000 202.000 $328,000 $ 33,000 21,000 69,000 $ 18,000 35,000 23,000 207.000 $330,000 23,000 103,000 22,000 102,000 Total stockholders' equity 126,000 124.000 Total liabilities and stockholders' equity.... $328,000 $330.000 $ 19,000 37,000 19,000 19,000 22,000…
Reporting land acquisition for cash and mortgage note on statement of cash flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expenses
You are considering the purchase of a new machine for a project. Details of this potential purchase are provided below. • The project life is 3 years The machine costs $240,000 o You will pay cash for half of this at time 0, and will finance the remaining half at 10% APR compounded annually over 3 years. The machine will be depreciated using a 7 year MACRS approach. Annual O&M costs of the machine are $25,000. Annual labor savings (revenues) are $100,000. Salvage Value at the end of year 3 will be $90,000. Working Capital requirement is initially $50,000. Any investment in Working Capital will be recovered at the end of the project. Assume an income tax rate and gains tax rate of 21%. Your MARR is 15%. NOTE: DO THIS PROBLEM AS A CONSTANT YEAR PROBLEM (I.E. YOU DON'T NEED TO ADJUST FOR THE EFFECTS OF INFLATION) Part (a) (a)). Fill in the Income and Cash Flow tables on the next page to find the annual after-tax cash flows. Cells outlined in BOLD are grading checkpoints. These cells are…
Autry Corporation's balance sheet and income statement appear below: Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Comparative Balance Sheet Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 870 511 359 136 223 Ending Balance $ 46 79 58 183 652 251 401 $ 584 $ 53 30 58 141 81 222 56 306 362 $ 584 Beginning Balance $ 47 78 56 181 535 284 251 $ 432 $ 57 29 62 148 75 223 55 154 209 $ 432