Refer to Matthias Medicals financial statements, presented in Exercise 12.8. Data From Exercise 12.8: Matthias Medical manufactures
Question:
Refer to Matthias Medical’s financial statements, presented in Exercise 12.8.
Data From Exercise 12.8:
Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow.
Matthias Medical
Comparative Balance Sheet
As of December 31
Matthias Medical
Comparative Income Statement and Statement of Retained Earning For the Year
Required
Calculate the following leverage ratios for 2020.
a. Debt ratio
b. Debt-to-equity ratio
c. Times interest earned ratio
Transcribed Image Text:
2020 2019 Assets Current assets Cash $ 397,220 $ 417,400 Accounts receivable, net 906,800 776,400 Inventory Other current assets 743,000 681,000 381,300 247,000 Total current assets 2,428,320 2,121,800 Property, plant, & equipment, net 8,678,000 8,440,100 Total assets $11,106,320 $10,561,900 Liabilities and Stockholders' Equity Current liabilities $ 2,934,700 $ 2,846,000 Long-term debt 3,700,600 3,892,600 Total liabilities 6,635,300 6,738,600 Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings 58,900 58,900 104,600 103,800 4,307,520 3,660,600 Total stockholders' equity 4,471,020 3,823,300 Total liabilities and stockholders' equity $11,106,320 $10,561,900
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