A.
Introduction: Times interest earned is calculated to know about the ability of the company to pay off its debt obligation. It reveals the capacity of the company to pay interest from income of the company.
To compute: Times interest earned for two years.
B.
Introduction:Times interest earned ratio is calculated to know about the ability of the organization to pay its debt obligation from the income earned.
To identify: Times interest earned ratio on a favorable or unfavorable trend.
C.
Introduction:Times interest earned is financial ratio which is calculated to know about the ability of the organization to complete its debt obligation from the income earned.
To identify:Current year’s times interest earned ratio of company S is better or worse than company G and company A.
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Loose Leaf for Financial Accounting: Information for Decisions
- 1. The annual net income of MAC Industries since 2005 is given below. Years t (since 2005) Net Income 1 4 6 12 15 $1,500 $2,500 $2,875 $2,850 $2,250 a. Create a scatter plot that includes your curve of best fit on top of the data. You should try several functions and make your choice based on best r-squared value. b. Find the year that Net Income was at its highest point. c. What was the income in that year?arrow_forwardThe following information was taken from the Netflix financial statements. For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflixs sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?arrow_forwardUse Apple’s financial statements to calculate the following ratios and summary measures for fiscal 2020 and 2019 (round to the nearest tenth). Indicate whether the ratio was more favorable in 2020 or 2019. Apple’s stock price was $115 per share on Sept. 30, 2020 and $55 on Sept. 30, 2019. Fiscal 2020 Fiscal 2019 Is the Ratio more favorable in 2020 or 2019? Return on Assetsarrow_forward
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- Category of industry is real estate. The analysis of Quick Ratio is as follows: 2015: 2.78x 2016: 2.02x 2017: 2.35x 2018: 0.12x 2019: 0.26x a. What is the trend analysis for that Quick Ratio and why it is increasing and decreasing? b. Compare the ratio with the industry average.arrow_forwardCompare Delta to two of its competitors, JetBlue and Southwest, by answering the following questions. You do not need to calculate all of the ratios for JetBlue and Southwest, only the ones required to answer the questions below: How much bigger is Delta from each of its competitors, by Revenue, in each year from 2018-2022? Plot the Revenue number for each company for these years on a single line graph. Which company has the highest Net Income in each year from 2018-2022? Which company has the highest Net Profit Margin in 2018? In 2022? Which company is the most profitable based on Gross Profit percentage each year from 2018-2022? (This is a trick question.) Which company is best at using its short-term assets to pay off its short-term liabilities in 2019? Which company has the best cash ratio in 2019? Is it the same company that is best at using its short-term assets to pay short-term liabilities? If not, why do you think it's different? Which company is the most leveraged in 2022?arrow_forwardComputing trend analysis Grand Oaks Realty’s net revenue and net income for the following five—year period, using 2015 as the base year, follow: Requirements Compute a trend analysis for net revenue and net income. Round to the nearest full percent. Which grew faster during the period, net revenue or net income?arrow_forward
- 1. Please calculate Starbucks Debt Ratio for each year. Do we want this ratio higher or lower? Did the company's performance improve or decline over that period? (Please show work and explain)arrow_forwarda. what are the debt to equity ratios at the beginning and the end of the 2018 fiscal business year? Has the ratio improved? If so, by how much? b. the restaurant has last cash at the end of the year than it had at the beginning, is that a bad thing? explain.arrow_forwardWhat is the comparison (analysis) of the Times Interest Earned (TIE) of Industry Average Ratio and the Company A Ratio? The Times Interest Earned (TIE) has decreased and increased. Why? Industry Average Times Interest Earned 2015: 8.63 2016: 42.10 2017: 15.41 2018: -0.07 2019: 0.27 Company A Times Interest Earned 2015: 5.53 2016: 3.80 2017: 5.78 2018: 5.07 2019: 4.58arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College