brain brian

ption 1: Ratio Analysis Exercises and Problems
Use the net income statement for Summer Peebles, Inc., below, to do the following assigned problems.

Compute the following earnings coverage ratios:

Earnings to fixed charges.
Cash flow to fixed charges.
Earnings coverage of preferred dividends.

Analyze and interpret the earnings coverage ratios in (A).

 Summer Peebles, Inc. Consolidated Income Statement ($ thousands)

Year Ending December 31, 2015
Sales
 $15,000.00
Undistributed Income of Less Than 50%-Owned Affiliates
 $300.00
Total Revenue
 $15,300.00
Cost of Goods Sold
 $7,000.00
Selling and Administrative Expenses
 $2,000.00
Depreciation
 $600.00
Rental Expense
 $500.00
Share of Minority Interest in Consolidated Income
 $200.00
Interest Expense
 $400.00
-$10,700.00
Income Before Taxes
 $4,600.00
Income Taxes
Current
 $900.00
Deferred
 $400.00
-$1,300.00
Net Income
 $3,300.00
Less Dividends
Common Stock
 $300.00
Preferred Stock
 $400.00
-$700.00
Earnings Retained for the Year
 $2,600.00

 
Additional Information:

The following changes occurred in current assets and current liabilities for 2015:

Current Accounts                      Increase (Decrease) 
Accounts Receivable                             $900.00
Notes Payable to Bank                          -$200.00
Inventories                                              -$800.00
Accounts Payable                                    $700.00
Dividend Payable                                    -$100.00 

 

The effective tax rate is 40%.
Shares of minority interests in consolidated income do not have fixed charges.
Interest expenses include:

Interest Incurred (Except Items Below)
 $600.00
Amortization of Bond Premium
-$300.00
Interest on Capitalized Leases
 $140.00
Interest Incurred
 $440.00
Less Interest Capitalized
-$40.00
Interest Expense
 $400.00

 

Amortization of previously capitalized interest (included in depreciation) is $60.
Interest implicit in operating lease rental payment (included in rental expense) is $120.

Your submission should:

Be 1-2 pages for the written portion.
Include the Excel spreadsheet with computations.
Clearly separate your responses so your instructor knows the problems you are answering.

THE ANSWERS ARE INCLUDED IN THIS POST.  1, 2, 3, 4

PAPER MUST BE FORMED AND WRITTEN WITH THE EXCEL SHEET

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more