The income statements for Home Depot, Inc. (HD) spanning the period 20062008 (just before the housing crash,
Question:
The income statements for Home Depot, Inc. (HD) spanning the period 2006–2008 (just before the housing crash, so these are representative years) are as follows:
a. Calculate the times interest earned ratio for each of the years for which you have data.
b. What is your assessment of how the firm’s ability to service its debt obligations has changed over thisperiod?
Transcribed Image Text:
2008 2007 2006 Earnings before interest and taxes Interest expense Income before tax Income tax expense Net income $7,316,0009,700,000 $9,425,000 (696,000) (392,000) 143,000) $6,620,00 9,308,000 9,282,000 (2,410,000 (3,547,000) (3,444,000) $4,210,00 5,7610005838,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 84% (13 reviews)
a b As shown in Step 3 of Checkpoint 151 the times interest earned ratio is calculated like this ...View the full answer
Answered By
Moses mwangi
With prior writing experience, be sure that I will give a great grade, If not an A+, it will be something close to this. My reviews speaks it all, Try me!!
4.80+
78+ Reviews
157+ Question Solved
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
Question Posted:
Students also viewed these Finance questions
-
Calculate the times interest earned ratio for LaTonyas Flop Shops, Inc., using the following information. Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000,...
-
The financial statements for Home Depot are presented in Appendix E at the end of the text. a. Determine the ratio of net sales to average total assets for Home Depot for the years ended February 2,...
-
The financial statements for Home Depot are presented in Appendix E at the end of the text. a. Compute the doomsday ratio for Home Depot for 2003 and 2002. b. What conclusions can be drawn from...
-
Find the volumes of the solids generated by revolving the regions bounded by the lines and curves about the x-axis. The region between the curve and the x-axis from x = 1/4 to x = 4 y = 1/(2x)
-
Find the complex eigenvalues and associated eigenvectors for the following matrices. a. b. 11 0 201 101 01
-
According to Watts statement, the shape of UNABs credit curve is most likely: A. Flat. B. Upward-sloping. C. Downward-sloping. On 1 January 20X2, Deem Advisors purchased a $10 million six-year senior...
-
The numbers of the current players for the Chicago Bulls basketball team are 1, 2, 3, 5, 6, 9, 11, 13, 16, 20, 22, 26, 32, and 40. Does it make sense to calculate the average (mean) of these numbers?
-
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $17.67 for each of the 15 million shares sold. The initial offering price was $19 per share, and the stock rose...
-
A leader's personal values greatly influence his or her ethical leadership style. Using appropriate examples, critically discuss the relationship between leader's personal values and ethical...
-
Journalize entries for the following related transactions of La Paz Company: a. Purchased $18,400 of merchandise from Harbin Co. on account, terms 2/10, n/30. b. Paid the amount owed on the invoice...
-
Presently, H. Swank, Inc. does not use any financial leverage and has total financing equal to $1 million. It is considering refinancing and issuing $500,000 of debt that pays 5 percent interest and...
-
Abbreviated income statements for Lowes Companies, Inc. (LOW) spanning the period 20062008 (just before the housing crash, so these are representative years) are as follows: a. Calculate the times...
-
This chapter is based on the insight that todays organizations in many national and societal contexts face the challenge of managing an increasingly diverse workforce. This increase in workforce...
-
Monarch Manufacturing purchased a new forklift and a packing machine. A check of Monarch's records revealed that an Asset Register record for the forklift vehicle and the packing machine had not been...
-
Your client wants to develop a piece of land that he is considering purchasing, and he is clueless about property taxes. Fortunately, you are an expert in property tax consulting. The subject...
-
1 points Save Answer An individual purchases a perpetuity providing payments of $330 at the end of each month, but with the first payment received immediately. If the interest rate on the perpetuity...
-
Write the pytorch code to implement the overall architecture of the decoder part of a transformer from input to output. I basically need you to explain the overall code in the bigram model class.
-
Write a report explaining the importance of computational thinking in everyday life. explain with examples the following decomposition, pattern recognition, algorithm and abstraction.
-
Match each of the key terms above with the definition that best fits it. Usability ____ A usability dimension concerned with how difficult it is for the user to perform a task for the first time....
-
On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34...
-
Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis....
-
What is exchange rate risk?
-
Briefly describe the current international monetary system. What are the different types of exchange rate systems?
-
What is the difference between spot rates and forward rates? When is the forward rate at a premium to the spot rate? At a discount?
-
Prepare a written network design plan to meet the above mentioned user requirements including a blueprint drawn using a modeling tool. (Ex: Microsoft Visio, Edraw Max). Support your answer by...
-
There is already one LAN at the KL site => 172.16.32.0/28. There are plans to have two more LANs at the KL site, LANs 2 and 3. Both of LANs 2 and 3 will be subnets of 172.16.32.0/24. LAN 2 requires...
-
Wikipedia is not actually produced in a competitive market, but instead is largely funded by voluntary individual donations from its users. Those users usually get a lot of value out of the existence...
Study smarter with the SolutionInn App