Question: Consider this simplified balance sheet for Geomorph Trading: Current liabilities Long-term debt Other liabilities Equity Current assets. Long-term assets. $ 215 610 $ 825

Consider this simplified balance sheet for Geomorph Trading: Current liabilities Long-term debt Other liabilities Equity Current assets. Long-term assets. $ 215 610 $ 825

Consider this simplified balance sheet for Geomorph Trading: Current liabilities Long-term debt Other liabilities Equity Current assets. Long-term assets. $ 215 610 $ 825 Required: a. What is the company's debt-equity ratio? Note: Round your answer to 2 decimal places. b. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. c. What is its net working capital? d. What is its current ratio? Note: Round your answer to 2 decimal places. $ 130 225 160 310 $ 825 a. Debt-equity ratio b. Long-term debt-to-capital ratio c. Net working capital d. Current ratio Lever Age pays an 10% rate of interest on $9.00 million of outstanding debt with face value $9 million. The firm's EBIT was $3 million. a. What is its times interest earned? Note: Round your answer to 2 decimal places. b. If depreciation is $100,000, what is its cash coverage ratio? Note: Round your answer to 2 decimal places. a. Times interest earned b. Cash coverage ratio

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The companys debtequity ratio can be calculated by dividing the total debt by the equity De... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Consider this simplified balance sheet for Geomorph Trading: a. What is the company's debt-equity ratio? b. What is the ratio of total long-term debt to total long-term capital? c. What is its net...

Consider this simplified balance sheet for Geomorph Trading: a. Calculate the ratio of debt to equity. b. What are Geomorphs net working capital and total long-term capital? Calculate the ratio of...

103. Consider the reaction shown here occurring at 25 C. MISSED THIS? Read Section 20.5, Watch KCV 20.5, IWE 20.6 A(s) + B2*(aq) A (aq) + B(s) AGXN -14.0 kJ - Determine the value of Eel and K for the...

Table 19.3 shows a simplified balance sheet for Rensselaer Felt. Calculate this company?s weighted-average cost of capital. The debt has just been refinanced at an interest rate of 6 percent (short...

The weighted average cost of capital (WACC) is the weighted average after-tax cost of an organization's various sources of financing such as debt and stock. In this chapter, we learned that the WACC...

The weighted average cost of capital (WACC) is the weighted average after-tax cost of an organization's various sources of financing, such as debt and stock. In this chapter, you learned that WACC is...

Book and liquidation value The balance sheet for Gallinas Industries is as follows. Additional information with respect to the firm is available: (1) Preferred stock can be liquidated at book value....

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...

Balance sheet formats The following information is based on the balance sheet of Delhaize Group (Delhaize), the Belgian food distributor, for 2007 (in ¬ million). Delhaize applies IFRS and...

Pam and Sun Corporations' balance sheets at December 31, 2015, are summarized as follows (in thousands): Pam acquired 80 percent of the voting stock of Sun on January 2, 2016, at a cost of $640,000....

Obtain copies of the GASBs new statement on accounting for pension plans issued in 2012. a. Identify the key changes from current GAAP reporting requirements for pension trust funds. b. Select a...

A skeleton of Westview Country Florists balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Westview Country Florists balance sheet: a. Debt ratio is...

In a network disgram, Activity 1 2 cant start until Activities 1 0 and 1 1 are both finished. What type of relationship does this suggest? a a start - to - start relationship b a start - to - finish...

In Exercise 19, find the average number of shots fired. In Exercise 19 Two shooters shoot clay pigeons. Gail has an 80% accuracy rate and Paul has a 60% accuracy rate. Paul shoots first. The first...

Explain how money can be nonneutral in the short run.

Collect (photocopy) advertisements from foreign periodicals/publications (Do not tear out this material from library publications). Use these advertisements to formulate an opinion on Country of...

Jim is doing an intake with a man who claims he is depressed. He tells Jim that ever since his wife left he has had trouble concentrating and waking up in the morning. He talks about how lonely it is...

A series RLC circuit contains a resistor R = 2 ohms and a capacitor C = 1/x F. Select the value of the inductor so that the circuit is critically damped.

1114. Volume of solids Find the volume of the solid bounded by the surface z=1x, y2 and the xy-plane.14.1x, y2=201+x2+y2-2

Summarize the differences between a commercial bank and an investment bank.

Reliable gearing currently is all-equity-financed. It has 10,000 shares of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a...

a. Rework Table 14.1, supposing that Dow Chemical now issues 10 million shares at $30 a share. Which of the figures would change? b. What would happen to Table 14.1 if instead Dow bought back 10...

For 2013, the income statement of Hylard Corporation had revenues of $152,000 and operating expenses of $78,000. Accounts receivable and accounts payable at year-end were $60,000 and $23,000,...

An examination of the accounts of Savage Company for the month of June revealed the following errors after the transactions were journalized and posted. 1. A check for $800 from R. Wright, a customer...

Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2019 and 2020. The...