Triumph's Companies, a home improvement store chain, reported the following summarized figures: E (Click the icon...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Triumph's Companies, a home improvement store chain, reported the following summarized figures: E (Click the icon to view the income statement.) E (Click the icon to view the balance sheets.) Triumph's has 30,000 common shares outstanding during 2018. Read the requirements. Requirement 1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Triumph's Companies. Begin by selecting the formula to calculate Triumph's Companies' debt ratio. Then enter the amounts and calculate the debt ratio for 2018. (Round the ratio to one tenth of a percent, X.X%.) Debt ratio Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue 46,500 $ 42,000 Cost of Goods Sold 20,600 23,700 Interest Expense 400 280 6,900 7,100 All Other Expenses 18,600 $ 10,920 Net Income %24 Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash 2,100 $ 1,900 Total Current Liabilities 25,000 $ 13,300 12,800 9,800 12,000 Long-term Liabilities 5,500 Total Liabilities Short-term Investments 25,000 Accounts Receivable 7,200 37,800 23,100 Merchandise Inventory 7,100 5,900 Stockholders' Equity 9,000 1,800 Common Stock Other Current Assets 13,000 13,000 32,600 20,000 27,100 Retained Earnings 29,000 Total Equity Total Current Assets 50,400 33,000 45,600 33,000 All Other Assets $ 83,400 $ 56,100 2$ Total Liabilities and Equity 83,400 S 56,100 Total Assets 1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Triumph's Companies. 2. Is Triumph's ability to pay its liabilities strong or weak? Explain your reasoning. Triumph's Companies, a home improvement store chain, reported the following summarized figures: E (Click the icon to view the income statement.) E (Click the icon to view the balance sheets.) Triumph's has 30,000 common shares outstanding during 2018. Read the requirements. Requirement 1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Triumph's Companies. Begin by selecting the formula to calculate Triumph's Companies' debt ratio. Then enter the amounts and calculate the debt ratio for 2018. (Round the ratio to one tenth of a percent, X.X%.) Debt ratio Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue 46,500 $ 42,000 Cost of Goods Sold 20,600 23,700 Interest Expense 400 280 6,900 7,100 All Other Expenses 18,600 $ 10,920 Net Income %24 Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash 2,100 $ 1,900 Total Current Liabilities 25,000 $ 13,300 12,800 9,800 12,000 Long-term Liabilities 5,500 Total Liabilities Short-term Investments 25,000 Accounts Receivable 7,200 37,800 23,100 Merchandise Inventory 7,100 5,900 Stockholders' Equity 9,000 1,800 Common Stock Other Current Assets 13,000 13,000 32,600 20,000 27,100 Retained Earnings 29,000 Total Equity Total Current Assets 50,400 33,000 45,600 33,000 All Other Assets $ 83,400 $ 56,100 2$ Total Liabilities and Equity 83,400 S 56,100 Total Assets 1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Triumph's Companies. 2. Is Triumph's ability to pay its liabilities strong or weak? Explain your reasoning.
Expert Answer:
Answer rating: 100% (QA)
Triumphs Companies priceearnings ratio for 2016 means that th... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
Students also viewed these accounting questions
-
A manager of a home improvement store has been using the linear trend multiplicative model to predict the demand for his lawn mowers. The quarterly seasonal indices are S 1 = 0.85, S 2 = 0.90, S 3 =...
-
Revew the foloeing financial infomation Cick the loon to view the financial nformation.) Read the reauitements Raquirement 1. Compute the missing amount (7) for each company. (Amounts are in millons)...
-
A company had 500,000 common shares outstanding during 2020. It also had 100,000 shares of 6%, $104 par nonconvertible, noncumulative preferred stock outstanding for the entire year of 2020. The...
-
What will the following code display? numbers = [1, 2, 3, 4, 5] numbers [2] = 99 print (numbers)
-
A gas in a container had a measured pressure of 57 kPa. Calculate the pressure in units of atm and mmHg.
-
The temperature of 2.5 mol of a monatomic ideal gas is 350 K. The internal energy of this gas is doubled by the addition of heat. How much heat is needed when it is added at (a) Constant volume and...
-
If you had been treated with respect, this would never have happened, would it?
-
Sid Patel bid for and won a concession to rent bicycles in the local park during the summer. During the month of April, Patel completed the following transactions for his bicycle rental business:...
-
What are the differences between the Enterprise Edition, Standard Edition, and Standard Edition One installation types of Oracle Database. Which one would be suitable for a small business or a...
-
Gabrielle receives 52 paychecks each year. She always deposits a specific percentage of her gross pay into her savings account. She also receives a bonus check, which is always more than $250, at the...
-
You have the following knowledge: Z = {A,B,C}, DA = {1,2,3,4}, DB = {2,3,4}, Dc = {1,2,4} with the constraints A
-
What exactly is cybersecurity? Is it a function or task? Is it a strategy? Is it about crime? Is it about national security?
-
A new director joins your organization, and you know that this director's division will be highly impacted by your project. What should you do next? A O Email the new director introducing yourself...
-
Obligations for the performance of an application, contractually, are often called a service level agreement (SLA). True False
-
Question 1: Smartphones are computer systems and contain O a mouse O a thumb wheel nonvolatile storage, ports, and a CPU battery backup
-
Factors such as a firm's objectives, procedures, and systems are examples of business buyer behavior. a. Cultural a. b. Technological c. Organizational d. Political e. Interpersonal influences on...
-
7. A 20.0 kg block is pulled along a table surface by a rope. If the table surface has a j = 0.10, what applied force (the tension force) in the rope necessary to accelerate the block at 2.5 m/s? 8....
-
Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...
-
This problem continues the Draper Consulting, Inc., situation from Problem 10-24 of Chapter 10. Draper Consulting, Inc., is considering raising additional capital. Draper plans to raise the capital...
-
Principe Technology Solutions, Inc., completed the following transactions during August 2012, its first month of operations: Aug 1 Received cash of $48,000 and issued common stock. 2 Purchased...
-
Glass Company began the year with inventory of $42,450 and purchased $263,000 of goods during the year. Sales for the year are $501,000, and Glasss gross profit percentage is 55% of sales....
-
Discuss how interest rate and exchange rate linkages between Eastland and Northland might change under each scenario. Discuss how interest rate and exchange rate linkages between Eastland and...
-
Working individually or in groups, answer the question, Is there such a thing as an accident-prone person?
-
Should Amazon screen out accident-prone individuals? Why or why not? If so, should they screen them?
Study smarter with the SolutionInn App