Compute the times interest coverage

Assignment Help Financial Accounting
Reference no: EM132513517

From the following prepare ratios from the Balance Sheet.

Particulars Amount (Rs.) as on 31.3.17

Share capital and Liabilities:

Equity Share Capital @ 100 each 7,00,000

Reserves 2,30,000

Debentures 2,50,000

Long term loans 1,00,000

Bills payable 50,000

Sundry Creditors 120,000

Other current liabilities 20,000

Assets:

Buildings 5,00,000

Machinery 4,00,000

Furniture 1,00,000

Bills Receivable 30,000

Sundry Debtors 1,40,000

Stock 2,50,000

Bank 50,000

Particulars 2017

Sales 490000

Less cost of goods sold 306000

Factory exp 22,000

Selling expenses 60000

Administrative exp 58000

Interest exp 25000

Tax 35%

  • Market price per share is 108 and dividend 4 per share is declared. Opening stock 232000 and opening debtors 150000 bill receivable 25,000, opening creditors 135,000

Required:

Question 1: Compute the following:

(1) Current Ratio,

(2) Acid-Test Ratio,

(3) Drs turnover ratio in days ,

(4) Inventory Turnover,

(5) fixed asset turnover,

(6) Debt Equity ratio,

(7) Times Interest Coverage ,

8) EPS

9) P/E ratio

10) Dividend pay out and

(11) Return on Investment

12)Net profit ratio

Reference no: EM132513517

Questions Cloud

Enrolling into the license practical nursing program : You are student enrolling in college with no financial aid, but I am applying for a scholarship. explain why feel you should be awarded this scholarship.
Calculate comprehensive income for the year ended at may : Calculate Current Assets as of May 31,2019 . Calculate Net Income for the year ended at May 31,2019. Calculate Comprehensive Income for the year ended
Analyze impact of process flowchart to identify deficiencies : Describe and explain models on one page that contribute to effective and efficient operations management methodologies in the organization you work for.
How many common shares are outstanding : The company declared and distributed a 10% stock dividend. At the end of the year, how many common shares are outstanding
Compute the times interest coverage : Compute the Current Ratio,Acid-Test Ratio, Return on Investment, Times Interest Coverage, fixed asset turnover,Inventory Turnover
Improve persuasive and marketing communication : Prepare and evaluate the use of media visuals to improve persuasive and marketing communication.
BIT203 Management Information Systems Assignment : BIT203 Management Information Systems Assignment Help and Solution, Emirates College of Technology - Assessment Writing Service
What are two explanations for the discrepancy : Research has shown that Monday is the highest negative-affect day across most cultures. However, in some countries, negative affect is lower on Friday.
Record the reacquisition of the shares : On December 31, 2020, Cullumber Treats Limited reported 41,000 common shares issued. Record the reacquisition of the shares

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate all variances for direct material and direct labor

Calculate all variances for direct material and direct labor for September and What is the standard number of hours allowed for the production of each unit?

  What entry should techcom make at the end of the year

Allowance for Doubtful Accounts had a debit balance of $175. What entry should TechCom make at the end of the year, for the estimated bad debts expense?

  What role does employee safety play in risk management

What are the responsibilities of the risk manager in workers' compensation? What role does employee safety play in risk management? How does discrimiantion in the workplace impact managers / supervisors? Describe the workings of a functional work tea..

  Evaluate shareholders equity

Balance Sheet. Construct a balance sheet for Sophie's Sofas give the following data. Evaluate Shareholders equity?

  Unrecorded bank service bank service charge

On a bank reconciliation, the amount of an unrecorded bank service bank service charge should be:

  Lump-sum sales of stock with preferred stock

(Lump-Sum Sales of Stock with Preferred Stock) Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000. Prepare the journal entry for the issuance when the market p..

  Creditable foreign income tax-foreign tax credit limitation

Quantco, a domestic corporation, is an engineering consulting firm that has its main offices in San Diego, California. Because Quantco does a considerable amount of business in China, it has a branch office in Beijing. Compute Quantco's creditable fo..

  An analysis was performed on gas mileage

An analysis was performed on gas mileage at a local automotive testing ground. The purpose of the study was to try and determine whether tire pressure, timing setting, type of oil, and/or type of gas had significant effects on gas mileage.

  What would be the firms payout ratio

If the firm strictly follows a residual distribution policy to determine the coming year's dividend, what would be the firm's payout ratio?

  Effect of alternative depreciation methods

Evaluating the effect of alternative depreciation methods on key ratios form analyst perspective - You are a financial analyst for General Motors and have been asked to determine the impact of alternative depreciation methods.

  Discuss the rights of common stockholders

List and discuss the Rights of common stockholders and Rights of preferred stockholders. Rockwell Industries purchased a plant asset to be used in its business. The expenditures included.

  What should be the depreciation expense

Bray changed to the straight-line method on January 1, year 3. Bray can justify the change. What should be the depreciation expense on this machine for the year ended December 31, year 3?

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!

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