Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

2012 Assets Cash & Short-term Investments 6,619.0 Total Receivables, Net 7,041.0

ID: 2731553 • Letter: 2

Question

2012

Assets

Cash & Short-term Investments

6,619.0

Total Receivables, Net

7,041.0

Total Inventory

3,581.0

Prepaid Expenses

1,479.0

Other Current Assets, Total

0.0

Total Current Assets

18,720.0

Property/Plant/Equipment, Total, Net

19,136.0

Goodwill, Net

16,971.0

Intangibles, New

16,525.0

Long-term Investments

2,351.0

Note Receivable, Long-term

136.0

Other Long-term Assets, Total

799.0

Total Assets

74,638.0

Liabilities & SEquity

Accounts Payable

4,451.0

Payable/Accrued

0.0

Accrued Expenses

3,892.0

Notes Payable/Short-term Debt

4,815.0

Current Port. Of LT Debt/Capital Leases

0.0

Other Current Liabilities, Total

3,931.0

Total Current Liabilities

17,089.0

Total Long-term Debt

23,544.0

Deferred Income Tax

5,063.0

Minority Interest

105.0

Other Liabilites, Total

6,543.0

Total Liabilities

52,344.0

Redeemable Preferred Stock

0.0

Preferred Stock, Non-Redeemable, Net

-(123.0)

Common Stock

26.0

Additional Paid-In Capital

4,178.0

Retained Earnings

43,158.0

Treasury Stock, Common

-(19,458.0)

ESOP Debt Guarantee

0.0

Unrealized Gain (Loss)

0.0

Other SEquity, Total

-(5,487.0)

Total SEquity

22,294.0

Total Liabilities & SEquity

74,638.0

Total Common Shares Outstanding

1,544.0

Total Preferred Shares Outstanding

0.8

Find the following:

Leverage Ratios

3. Debt-to-total-assets ratio

4. Debt-to-equity ratio

5. Long-term debt-to-equity ratio

6. Times-earned-interest ratio

2012

Assets

Cash & Short-term Investments

6,619.0

Total Receivables, Net

7,041.0

Total Inventory

3,581.0

Prepaid Expenses

1,479.0

Other Current Assets, Total

0.0

Total Current Assets

18,720.0

Property/Plant/Equipment, Total, Net

19,136.0

Goodwill, Net

16,971.0

Intangibles, New

16,525.0

Long-term Investments

2,351.0

Note Receivable, Long-term

136.0

Other Long-term Assets, Total

799.0

Total Assets

74,638.0

Liabilities & SEquity

Accounts Payable

4,451.0

Payable/Accrued

0.0

Accrued Expenses

3,892.0

Notes Payable/Short-term Debt

4,815.0

Current Port. Of LT Debt/Capital Leases

0.0

Other Current Liabilities, Total

3,931.0

Total Current Liabilities

17,089.0

Total Long-term Debt

23,544.0

Deferred Income Tax

5,063.0

Minority Interest

105.0

Other Liabilites, Total

6,543.0

Total Liabilities

52,344.0

Redeemable Preferred Stock

0.0

Preferred Stock, Non-Redeemable, Net

-(123.0)

Common Stock

26.0

Additional Paid-In Capital

4,178.0

Retained Earnings

43,158.0

Treasury Stock, Common

-(19,458.0)

ESOP Debt Guarantee

0.0

Unrealized Gain (Loss)

0.0

Other SEquity, Total

-(5,487.0)

Total SEquity

22,294.0

Total Liabilities & SEquity

74,638.0

Total Common Shares Outstanding

1,544.0

Total Preferred Shares Outstanding

0.8

Explanation / Answer

3. Debt-to-total-assets ratio =52344.0/74638.0=0.70

4. Debt-to-equity ratio=52344.0/22294.0=2.34

5. Long-term debt-to-equity ratio=23544.0/22294.0=1.05

6. Times-earned-interest ratio=EBITA/Interest Payable. ( Since the Profit & Loss Statement is not given in the question , this ratio can't be calculated)