User Account

All Pages

Calculate the times interest earned ratio for each of years

Assignment Help Financial Accounting
Reference no: EM132555649

The income statements for Home Depot, Inc. (HD) spanning the period 2014-2016 are found below:

                                                                        2014                   2015                  2016

Earnings before interest and taxes           $7,316,000         $9,700,000       $9,425,000

Interest expense                                   (696,000)         (392,000)             (143,000)

Income before tax                                 $6,620,000          $9,308,000         $9,282,000

Income tax expense                               (2,410,000)          (3,547,000)       (3,444,000)

Net Income                                           $4,210,000            $5,761,000         $5,838,000

Question a. Calculate the times interest earned ratio for each of the years for which you have data. What does this ratio tell you about Home Depot?

Question b. What is your assessment of how the firm's ability to service its debt obligations has changed over this period?

Question c. How does the change in debt affect the firm's cost of capital?

Question d. What are some other things that might impact your assessment?

Reference no: EM132555649

Questions Cloud

Detail the characteristics of cells : Our immune system is made up of many different cell types and organs that all work together to keep us protected
How to compute journal entries and the stockholders equity : How to compute journal entries & the stockholders' equity for balance sheet Dec 31, 2022. Crane Company had 1,255,000 shares of $7 par common stock
Leading And Managing The HR Project : Briefly discuss a minimum of four outcomes (possible issues) resulting from managing projects and address how you might resolve the issues.
Neutrophils flooding the site of infection : Detail the process and steps that would occur in this situation that results in neutrophils flooding the site of infection.
Calculate the times interest earned ratio for each of years : Calculate the times interest earned ratio for each of the years for which you have data. What does this ratio tell you about Home Depot?
Compare and contrast the capital asset pricing model : Discuss what you know about risk and return issues, differentiate systematic risk from unsystematic risk. Furthermore, discuss what good risk
Calculate the cost for each of the capital resources : Calculate the cost for each of the capital resources. The company can issue bonds that have a maturity period of 20 years with a face value of RM1,000.
Professional development plan : Create a properly formatted (APA) paper that provides a summary of the their professional development plan. The required components of the paper
How to prepare the necessary journal entries in june : How to Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of equipment.On 1 July 2016, Liala ltd sold an item of plant

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd