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 56 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
Great answer, keep it coming :)


kswal303

  • Member
  • Posts: 316
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

For a complete list of videos, visit our video library