This topic contains a solution. Click here to go to the answer

Author Question: A. Using the financial statements for GMT Enterprises for 2010 (given below), calculate the return ... (Read 54 times)

Kikoku

  • Hero Member
  • *****
  • Posts: 540
a. Using the financial statements for GMT Enterprises for 2010 (given below), calculate the return on equity,
  the debt ratio, and the times interest earned ratio.
 
  b. Suppose the industry average debt ratio is 50. Give one reason why the debt ratio for GMT Enterprises
  may be considered favorable, and give one reason why the debt ratio for GMT Enterprises may be considered
  unfavorable.
  GMT Enterprises
  2010 Financial Statements
  Income Statement ()
  Sales 10,000
  Operating expenses 8,200
  EBIT 1,800
  Interest expense 100
  EBT 1,700
  Taxes (40) 680
  Net income 1,020
  Balance Sheet ()
  Current assets 1,500
  Fixed assets 4,000
  Total assets 5,500
  Accounts payable 900
  Accruals 600
  Long-term debt 400
  Common stock 2,100
  Retained earnings 1,500
  Total liabilities & equity 5,500

Question 2

Mason Construction Inc. had net sales of 480,000, costs of sales of 130,000, additional expenses of 200,000, depreciation of 40,000, and a tax rate of 30. Use this information to determine the firm's after tax earnings on a cash basis.
 
  A) 77,000
  B) 105,000
  C) 117,000
  D) 145,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Ksanderson1296

  • Sr. Member
  • ****
  • Posts: 339
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly




Kikoku

  • Member
  • Posts: 540
Reply 2 on: Jul 11, 2018
Excellent


kswal303

  • Member
  • Posts: 316
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

For a complete list of videos, visit our video library