Companies that operate in different industries may have very different financial ratio values. These differences may grow
Question:
Compare three leading companies on their current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Compute the ratios for Company B, Company N, and Company V.
Based on your computed ratio values, which company looks the leastrisky?
Transcribed Image Text:
(Amounts in millions or billions) Company B Company N Company V 97,320 136,146 5,646 655 450 Income data Total revenues Operating income Interest expense Net income 59,732 295 41 230 27 17 Assets and liability data (Amounts in millions or billions) Total current assets Long-term assets Total current liabilities Long-term liabilities Stockholders' equity 5,321 144,720 65,828 72,000 2,277 111,177 27.371 429 81 227 592 2,217 206 1,419
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
Amounts in millions or billions Company Company Company Ratio B N ...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Question Posted:
Students also viewed these Accounting questions
-
The debt-to-equity and times interest earned ratios were discussed in this chapter. Which is a better indicator of a companys ability to meet its required interest payment? Explain.
-
Public companies that operate in different businesses or segments are required to report operating results for those segments. This requirement makes it possible to evaluate the performance of...
-
The debt-to-equity and times interest earned ratios were discussed in this chapter. Which is better indicator of a company's ability to meet its required interest payment? Explain.
-
What is a derivative contract? Give an example. How are derivatives related to risk management?
-
Is this a share-based payment transaction? Should Zebra Ltd recognise the acquisition cost as an asset or an expense? Explain.
-
Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records. Instructions (a) Prepare a bank reconciliation going from...
-
Oil \((S G=0.9)\) flows downward through a vertical pipe contraction as shown in Fig. P5.97. If the mercury manometer reading, \(h\), is \(100 \mathrm{~mm}\), determine the volume flowrate for...
-
You will receive $6,800 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from now? Multiply $6,800 .909 (one years discount rate at 10...
-
Calculate C in the units of d 2 /AU 3 for each orbital body listed in this table. Use the formula T 2 = Ca 3 and the proper number of significant digits in your value for C. The first one has been...
-
Chevron U.S.A. Inc. and Sheikhpour had entered into a settlement agreement that would require Sheikhpour to complete reconstruction work on his gas station. When Sheikhpour did not do the work,...
-
Footnote 10 of Abercrombie and Fitch Co.s financial statements for fiscal year 2010 (January 29, 2011) contains the following information: At January 29, 2011, the Company was committed to...
-
Prime Nation Financial Services is considering two plans for raising $600,000 to expand operations. Plan A is to borrow at 6%, and plan B is to issue 125,000 shares of common stock at $4.80 per...
-
For the mathematical system given, determine which of the five properties of a commutative group do not hold. a b d e a d e a b b d a b e a b d d a b e d e b d a
-
Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one unit of the product for the year follow: Direct materials $ 2 6 0 Direct labor ( $ 1 8 / hour ) $ 4...
-
At the end of November 202 Upper X, the total amount of Social Security, $ 490, and Medicare, $ 275, was withheld as tax deductions from the employees of Rapid Waters, Inc. Federal income tax of $ 2...
-
What is biological extinction (extinction)? What is an endemic species and why are such species vulnerable to extinction? Define and distinguish between the background extinction rate and mass...
-
In the simulation, Jack and Susie demonstrate both negative and positive affect toward one another. Give several examples of each. Gottman speculates that showing interest in one another is a...
-
How does our organization strategically communicate performance expectations, deliver regular performance feedback, and facilitate meaningful performance discussions between managers and employees to...
-
In the chapter, we described a database with two entities, COURSE and INSTRUCTOR (refer to Figure 8.10). Book was left as an attribute of COURSE Extend the database to include BOOK as an entity....
-
What are some of the various ways to implement an awareness program?
-
The Finishing Department of Bailey and Watson, Inc., the last department in the manufacturing process, incurred production costs of $180,000 during the month of June. If the June 1 balance in...
-
Sue and Sam Ristic own Club Fab. From its inception, Club Fab has sold merchandise on either a cash or credit basis, but no credit cards have been accepted. During the past several months, the...
-
Stropes Corporation is a recently formed business selling the Worlds Best Doormat. The corporation is selling doormats faster than Stropes can make them. It has been selling the product on a credit...
-
As its year-end approaches, it appears that Lopez Corporations net income will increase 10% this year. The president of Lopez Corporation, nervous that the stockholders might expect the company to...
-
Figure out, salaries, net income, add net income with retained earnings and totally stockholder equity , ?accounts payable and total liabilities and stockholders equity RILEY, INCORPORATED Statement...
-
Determine the material inventory balance at the end of may? Received Issued Receiving Received Materials Report Number Received Quantity Unit Price Requisition Number Issued Quantity Issued Balance...
-
During October 2 0 2 3 , Fern Field Farms, Inc. received $ 1 0 , 0 0 0 from customers in exchange for fruit and vegetables. During the same month, the company paid $ 2 , 0 0 0 to employees, $ 5 0 0...
Study smarter with the SolutionInn App