Income statements-what is the change in the debt ratio

Assignment Help Financial Management

Reference no: EM131020462

Income Statements

2013 2014

Net Sales $1,500,000 $1,800,000

Cost of Goods Sold 900,000 1,260,000

Gross Profit 600,000 540,000

Marketing 150,000 200,000

General & Administrative 150,000 200,000

Depreciation 53,000 60,000

EBIT 247,000 80,000

Interest 57,000 70,000

Earnings Before Taxes 190,000 10,000

Income Taxes 76,000 4,000

Net Income $114,000 $6,000

Balance Sheets

2013 2014

Cash $40,000 $10,000

Accounts Receivables 260,000 360,000

Inventories 500,000 600,000

Total Current Assets 800,000 970,000

Fixed Assets, Net 400,000 500,000

Total Assets $1,200,000 $1,470,000

Accounts Payable $170,000 $180,000

Accruals 70,000 80,000

Bank Loan 90,000 184,000

Total Current Liabilities 330,000 444,000

Long-Term Debt 400,000 550,000

Common Stock 350,000 350,000

Retained Earnings 120,000 126,000

Total Liab. & Equity $1,200,000 $1,470,000

What is the change (in percentage) in the debt ratio from 2013 to 2014?

Reference no: EM131020462

Questions Cloud

Find the minimum average cost using algebra : Find the minimum average cost using algebra, and showing work. Graph the average cost on a suitable scale from 0 to 500 units, showing the minimum value.

Have the directors of gml breached their duty of care : the board minutes suggest that the directors saw and approved the notice. It was sent to the ASX immediately after the board meeting. Have the directors breached their duty of care?

Free cash flow is expected to continue growing at same rate : The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Yea..

Bond between carbon and hydrogen atoms : A saturated carbon is a molecule formed from x carbon atoms and y hydrogen atoms by adding bonds between atoms such that each carbon atom is in four bonds.

Income statements-what is the change in the debt ratio : Income Statements-What is the change (in percentage) in the debt ratio from 2013 to 2014?

Prepare the context diagram and the level 0 dfd : Prepare an REA diagram describing Kim's database. You may repeat a box for an individual entity if necessary to make your drawing neat.

The market value and the face value of the zero-coupon bond : You will be paying $10,000 a year in education expenses at the end of the next two years. Currently the yield curve is flat at 8%. If you want to fully fund and immunize your obligation with a single issue of a zero-coupon bond, what maturity bond mu..

How much debt the firm had used to finance its assets : You have a company's balance sheet, its income statement, and its statement of cash flows. Which would you refer to if you wanted to know if a company made or lost money last year? If you wanted to find out how much debt the firm had used to finance ..

Capital structure weights for equity and debt respectively : Suppose that a company's equity is currently selling for $25 per share and that there are 1 million shares outstanding. If the firm also has 9 thousand bonds outstanding, which are selling at 98 percent of par ($1,000), what are the firm's current ca..

User Account

All Pages