All Related Questions of Times Interest Earned Ratio

Q: Realtor Inc. is a company that owns five large office buildings

Realtor Inc. is a company that owns five large office buildings that are leased out to tenants. Most of the leases are for 10 years or more with renewal clauses for an additional 5 years. Currently, t...

Q: AGF Foods Company is a large, primarily domestic, consumer Foods

AGF Foods Company is a large, primarily domestic, consumer Foods Company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy&acir...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This mate...

Q: Berry Company reported the following on the company’s income statement in two

Berry Company reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior year. Ro...

Q: Averill Products Inc. reported the following on the company’s income statement

Averill Products Inc. reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior...

Q: The following data were taken from recent annual reports of Southwest Airlines

The following data were taken from recent annual reports of Southwest Airlines, which operates a low-fare airline service to more than 50 cities in the United States: a. Determine the times interest...

Q: Loomis, Inc. reported the following on the company’s income statement

Loomis, Inc. reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior year. Rou...

Q: Iacouva Company reported the following on the company’s income statement for two

Iacouva Company reported the following on the company’s income statement for two recent years: a. Determine the times interest earned ratio for the current year and the prior year....

Q: The following financial data (in thousands) were taken from recent

The following financial data (in thousands) were taken from recent financial statements of Staples, Inc.: 1. Determine the times interest earned ratio for Staples in Year 3, Year 2, and Year 1? Roun...

Q: The following data were taken from the financial statements of Hunter Inc

The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: The income before income tax was $480,000 and $420,000 for the current and previous ye...

Q: Hasbro, Inc. and Mattel, Inc. are the two

Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each compan...

Q: Calculate the times interest earned ratio for LaTonya’s Flop Shops, Inc

Calculate the times interest earned ratio for LaTonya’s Flop Shops, Inc., using the following information. Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, oth...

Q: Go to the book’s companion website and use information found there to

Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) Compute the debt to total assets ratio and t...

Q: Go to the book’s companion website and use information found there to

Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) Compute the debt to total assets ratio and t...

Q: You have just started your first job as a financial analyst for

You have just started your first job as a financial analyst for a large stock brokerage company. Your boss, a senior analyst, has finished a detailed report evaluating bonds issued by two different co...

Q: What type of times interest earned ratio would be desirable? What

What type of times interest earned ratio would be desirable? What type would not be desirable?

Q: Find the following financial ratios for Smolira Golf Corp. (use

Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): Short-term solvency ratios: a. Current ratio...

Q: Match each ratio or percentage with its computation. /

Match each ratio or percentage with its computation.

Q: Match each ratio or percentage with its computation. /

Match each ratio or percentage with its computation.

Q: The questions in this exercise are based on Target Corporation. To

The questions in this exercise are based on Target Corporation. To answer the questions, you will need to download Target’s 2004 annual report (the company’s fiscal year ended on January 29, 2005) at...

Q: On January 1 of this year, Cunningham Corporation issued bonds with

On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually every December 31. W...

Q: You have just started your first job as a financial analyst for

You have just started your first job as a financial analyst for a large stock brokerage company. Your boss, a senior analyst, has finished a detailed report evaluating bonds issued by two different co...

Q: Answer the following multiple-choice questions: a. Which

Answer the following multiple-choice questions: a. Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective? 1. Debt ratio 2. Debt to tangib...

Q: Hasbro, Inc. (HAS), and Mattel, Inc.

Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown f...

Q: Stores, Inc. (WMT) is the largest retailer in

Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the internet, while...

Q: Aeropostale, Inc. (ARO) is a specialty fashion retailer

Aeropostale, Inc. (ARO) is a specialty fashion retailer targeting young adults. The income before income tax expense and interest expense for four recent years follow (in millions): a. Compute the t...

Q: Hilton Worldwide Holdings, Inc. (HLT) and Marriott International

Hilton Worldwide Holdings, Inc. (HLT) and Marriott International, Inc. (MAR) are two of the largest hotel operators in the world. Selected financial information from recent income statements for both...

Q: Refer to the Panera Bread’s financial statements at the end of the

Refer to the Panera Bread’s financial statements at the end of the text and answer the following questions: Panera Bread’s financial statements: 1. What are the...

Q: The following information is available from the balance sheets at the ends

The following information is available from the balance sheets at the ends of the two most recent years and the income statement for the most recent year of Impact Company: 2017 Sales revenue â...

Q: The income statement for J and T Seafood appears below.

The income statement for J and T Seafood appears below. Additional information: 1. The weighted average common shares outstanding in 2008 were 30,000 shares. 2. The market price of J and T Seafood s...

Q: Based on the financial statement data in Exercise 24-1A,

Based on the financial statement data in Exercise 24-1A, Exercise 24-1A: Based on the comparative income statement and balance sheet of Cowan Kitchen Counters, Inc., that follow, compute the follow...

Q: Based on the financial statement data in Exercise 24-1B,

Based on the financial statement data in Exercise 24-1B, Exercise 24-1B: Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given on the next page, compute the...

Q: Using the following data for Jackson Products Company, answer Parts a

Using the following data for Jackson Products Company, answer Parts a through g: Income Statement for the Year Ended December 31, 2016 Net sales (all on credit) …â€&br...

Q: Sun Minerals, Inc., is considering issuing additional long-term

Sun Minerals, Inc., is considering issuing additional long-term debt to finance an expansion. Currently, the company has $50 million in 10 percent debt outstanding. Its after-tax net income is $12 mil...

Q: The income statements for Lowe’s Companies, Inc. (LOW),

The income statements for Lowe’s Companies, Inc. (LOW), spanning the period 2014–2016 (just before the housing crash, so these are representative years) are as foll...

Q: The income statements for Home Depot, Inc. (HD),

The income statements for Home Depot, Inc. (HD), spanning the period 2014–2016 (just before the housing crash, so these are representative years) are as follows: a. Calculate the t...

Q: The Karson Transport Company currently has net operating income of $500

The Karson Transport Company currently has net operating income of $500,000 and pays interest expense of $200,000. The company plans to borrow $1 million on which the firm will pay 10 percent interest...

Q: Use the accompanying financial statements for Fox Manufacturing Company for the year

Use the accompanying financial statements for Fox Manufacturing Company for the year ended December 31, 2019, along with the industry average ratios below, to do the following: a. Prepare and interpre...

Q: Given the following financial statements, historical ratios, and industry averages

Given the following financial statements, historical ratios, and industry averages, calculate Sterling Company’s financial ratios for the most recent year. (Assume a 365-day year.)...

Q: Home Health Inc. has come to Jane Ross for a yearly

Home Health Inc. has come to Jane Ross for a yearly financial checkup. As a first step, Jane has prepared a complete set of ratios for fiscal years 2018 and 2019. She will use them to look for signifi...

Q: Financial information from fiscal year 2016 for two companies competing in the

Financial information from fiscal year 2016 for two companies competing in the cosmetics industry—The Estée Lauder Companies and e.l.f. Beauty Inc.—app...

Q: Seven years ago, after 15 years in public accounting, Stanley

Seven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his position as manager of cost systems for Davis, Cohen, and O’Brien Public Accountants and start...

Q: Use the information in E5-17 for Dropafix Inc.

Use the information in E5-17 for Dropafix Inc. Instructions: (a) Calculate the current and acid test ratios for 2016 and 2017. (b) Calculate Dropafix’s current cash debt coverage ra...

Q: Lydia Trottier has prepared baked goods for sale since 1998. She

Lydia Trottier has prepared baked goods for sale since 1998. She started a baking business in her home and has been operating in a rented building with a storefront since 2003. Trottier incorporated t...

Q: Realtor Inc. is a company that owns five large office buildings

Realtor Inc. is a company that owns five large office buildings that are leased out to tenants. Most of the leases are for 10 years or more with renewal clauses for an additional 5 years. Currently, R...

Q: Hasbro, Inc. and Mattel, Inc. , are the

Hasbro, Inc. and Mattel, Inc. , are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each comp...

Q: Amazon .com, Inc. is one of the largest Internet

Amazon .com, Inc. is one of the largest Internet retailers in the world. Walmart Stores, Inc. is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however, Walm...

Q: Arch Coal, Inc. is a major coal mining company in

Arch Coal, Inc. is a major coal mining company in the United States. Condensed income statement information for three recent years follows (in millions): A. Compute the times interest earned ratio f...

Q: Hilton Worldwide Holdings, Inc. and Marriott International, Inc.

Hilton Worldwide Holdings, Inc. and Marriott International, Inc. are two of the largest hotel operators in the world. Selected financial information from recent income statements for both companies fo...

Q: Instructions: Access the financial statements for Loblaw Companies Limited for

Instructions: Access the financial statements for Loblaw Companies Limited for the year ended January 3, 2015 and Empire Company Limited for the year ended May 2, 2015, through SEDAR (www.sedar. com)...

Q: Instructions: Access the financial statements of Air Canada and WestJet

Instructions: Access the financial statements of Air Canada and WestJet Airlines Ltd. for their years ended December 31, 2014 through SEDAR (www.sedar.com) or the companies’ websites. Review the finan...

Q: The following information (in $000) has been obtained from

The following information (in $000) has been obtained from Patinka Limited’s financial statements for the fiscal years ended December 31. There are no preferred shares issued by Pa...

Q: Access the financial statements for Loblaw Companies Limited for the year ended

Access the financial statements for Loblaw Companies Limited for the year ended December 30, 2017 and Empire Company Limited for the year ended May 6, 2017, through SEDAR (www.sedar.com) and then answ...

Q: Access the financial statements of Air Canada and WestJet Airlines Ltd.

Access the financial statements of Air Canada and WestJet Airlines Ltd. for their years ended December 31, 2017, through SEDAR (www.sedar.com) or the companies' websites. Review the financial statemen...

Q: The following information (in $000) has been obtained from

The following information (in $000) has been obtained from Patinka Limited's financial statements for the fiscal years ended December 31. There were no preferred shares issued by Patinka nor were the...

Q: During 2021, Barb Ryan, the sole shareholder in Sunshine Farms

During 2021, Barb Ryan, the sole shareholder in Sunshine Farms Pty Ltd, decides to invest in automotive manufacturing equipment to reduce direct labour costs. She decides to fund the investment of $14...

Q: Averill Products Inc. reported the following on the company’s income statement

Averill Products Inc. reported the following on the company’s income statement in 20Y8 and 20Y9: Answer: a. Times Interest Earned = / 20Y8: /= 12.0 20Y9: / 13.6 b. The t...

Q: Amazon.com, Inc. (AMZN) is one of

Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Walmart Inc. (WMT) is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however,...

Q: Abercrombie & Fitch (ANF) is a leading, global specialty

Abercrombie & Fitch (ANF) is a leading, global specialty retailer of casual apparel. The income before income tax expense and interest expense for four recent years follow (in thousands): a. Compu...

Q: Hilton Worldwide Holdings, Inc. (HLT) and Marriott International

Hilton Worldwide Holdings, Inc. (HLT) and Marriott International, Inc. (MAR) are two of the largest hotel operators in the world. Selected financial information from recent income statements for both...

Q: Hasbro, Inc. (HAS) and Mattel, Inc.

Hasbro, Inc. (HAS) and Mattel, Inc. (MAT) are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for...

Q: Comparative figures for Samsung, Apple, and Google follow.

Comparative figures for Samsung, Apple, and Google follow. Required 1. Compute the times interest earned ratio for the most recent two years for Samsung using the data shown. 2. Is the change in Samsu...

Q: Use the information in E5.l 7 for Dropafix Inc.

Use the information in E5.l 7 for Dropafix Inc. Instructions a. Calculate the current and acid-test ratios for 2019 and 2020. b. Calculate Dropafix's current cash debt coverage ratio for 2020. c. Cal...

Q: Lydia Trottier has prepared baked goods for sale since 1998. She

Lydia Trottier has prepared baked goods for sale since 1998. She started a baking business in her home and has been operating in a rented building with a storefront since 2003. Trottier incorporated t...

Q: Sprout Company reported the following on the company’s income statement in two

Sprout Company reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior year. Ro...

Q: Mahmood Products Inc. reported the following on the company’s income statement

Mahmood Products Inc. reported the following on the company’s income statement in two recent years: a. Determine the times interest earned ratio for the current year and the prior y...

Q: The following data were taken from recent annual reports of Southwest Airlines

The following data were taken from recent annual reports of Southwest Airlines, which operates a low-fare airline service to more than 50 cities in the United States: a. Determine the times interest...

Q: Hasbro, Inc., and Mattel, Inc., are the two

Hasbro, Inc., and Mattel, Inc., are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each comp...

Q: The following financial data (in thousands) were taken from recent

The following financial data (in thousands) were taken from recent financial statements of Office Depot, Inc.: 1. Determine the times interest earned ratio for Office Depot in Year 3, Year 2, and Yea...

Q: Richard’s Inc. (a fictional company) operates toy stores throughout

Richard’s Inc. (a fictional company) operates toy stores throughout the United States. In August 20X1, the company said that it might default on certain of the financial covenants contained in one of...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This mate...

Q: In the Chapter 13 Data Analytics Cases, you used Tableau to

In the Chapter 13 Data Analytics Cases, you used Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies: Discount Goods and Big Store as to their l...

Q: AGF Foods Company is a large, primarily domestic, consumer foods

AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy&acir...

Q: On January 1, 2021, the general ledger of Freedom Fireworks

On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: During January 2021, the following transactions occurred: January 1: Borrowed $100,000 from Captive...

Q: Two online travel companies, E-Travel and Pricecheck, provide

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Required: 1. Calculate the debt to equity ratio for E-Travel and Pricecheck. Which company has the...

Q: On January 1, 2021, the general ledger of Freedom Fireworks

On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: During January 2021, the following transactions occur: January 1 Borrow $100,000 from Captive Credi...

Q: Selected financial data for Bahama Bay and Caribbean Key are as follows

Selected financial data for Bahama Bay and Caribbean Key are as follows: Required: 1. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. Which company has th...

Q: Selected financial data for Surf City and Paradise Falls are as follows

Selected financial data for Surf City and Paradise Falls are as follows: Required: 1. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. Which company has th...

Q: The following information is available for Swing High Inc.: /

The following information is available for Swing High Inc.: Required Calculate the times interest earned ratio for 2020. Explain why it compares favourably or unfavourably.

Q: Comparative figures for Samsung, Apple, and Google follow.

Comparative figures for Samsung, Apple, and Google follow. Required 1. Compute the times interest earned ratio for the most recent two years for Samsung using the data shown. 2. Is the change in Samsu...

Q: Refer to the financial statements of The Home Depot in Appendix A

Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further e...

Q: Looking back over the last few years, it is clear that

Looking back over the last few years, it is clear that Nicole Mackisey has accomplished a lot running her business, Nicole’s Getaway Spa (NGS). Nicole is curious about her company&ac...

Q: At May 31, 2016, FedEx Corporation reported the following amounts

At May 31, 2016, FedEx Corporation reported the following amounts (in millions) in its financial statements: Required: 1. Compute the debt-to-assets ratio and times interest earned ratio (to two dec...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available under the Investor Re...

Q: In your web browser, search for the investor relations page of

In your web browser, search for the investor relations page of a public company you are interested in (e.g., Zoom investor relations). Select SEC Filings or Annual Report or Financials to obtain the 1...

Q: Refer to the financial statements of Target (Appendix B) and

Refer to the financial statements of Target (Appendix B) and Walmart (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Required: 1. Compute the debt-to-equity ratio for...

Q: Refer to the financial statements of Nike and Adidas presented in PS

Refer to the financial statements of Nike and Adidas presented in PS-36. REQUIRED a. Compute each company's current ratio and quick ratio for each year. Comment on any changes that you observe. b. Com...

Q: Refer to the financial statements of Home Depot and Lowe's presented in

Refer to the financial statements of Home Depot and Lowe's presented in PS-38. REQUIRED a. Compute each company's current ratio and quick ratio for each year. Comment on any changes that you observe....

Q: On January 1, 2024, the general ledger of Freedom Fireworks

On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occur: January 1 Borrow $100,000 from Captive Credi...

Q: Selected financial data for Surf City and Paradise Falls are as follows

Selected financial data for Surf City and Paradise Falls are as follows: Required: 1. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. Which company has th...

Q: Presented here are summarized data from the balance sheets and income statements

Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: Required: a. Calculate return on investment, based on net income and average total assets, for 2023 and...