Refer to the 2006 balance sheet for Consolidated Edison, reproduced in Exhibit 3-6 on pages 108110. 1.

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Refer to the 2006 balance sheet for Consolidated Edison, reproduced in Exhibit 3-6 on pages 108–110.
1. Compute the following financial ratios for Consolidated Edison for 2006:
(a) Debt ratio (total liabilities/total assets)
(b) Current ratio (current assets/current liabilities)
(c) Long-term debt as a percentage of total capitalization
(d) Long-term debt as a percentage of “net plant”
2. For Consolidated Edison, which of the four ratios computed in part (1) is the most informative? The least informative? Explain.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...
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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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