0 Data Table 94,000 450,000 350,000 Mortgage note payable, current portion ........$ Leases payable (long-term) Bonds payable, long-term. Mortgage note payable long-term ............ Bonds payable, current portion ................ Interest expense ........ Total assets ...............$ 5,200,000 Accumulated depreciation, equipment ...... 167,000 Discount on bonds payable (all long-term) 29,000 Operating income .......... 400,000 314,000 314,000 Operating come .. 744,000 100,000 225,000 Equipment. Long-term investments (market value) ...... Interest payable ........... 420,000 76,000 Print Done Requirement 1. Show how each relevant item would be reported on the Braintree Foods classified balance sheet. Include headings and totals for current liabilities and long-term liabilities. Select the labels and then enter the amounts to complete the classified balance sheet. You will need to determine the total current assets value from the information provided and your calculations. Braintree Foods, Inc. Partial Balance Sheet December 31, 2018 Assets Liabilities Less: ess: Requirement 2. Answer the following questions about Braintree Food's financial position at December 31, 2018: a. What is the carrying amount of the bonds payable (combine the current and long-term accounts)? $ b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the Interest expense is the Requirement 3. How many times did Braintree Foods cover its interest expense during 2018? (Round your answer to two decimal places.) Braintree covered its interest expense times. Requirement 4. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. Assume the company only has common stock issued and outstanding. What other information would be helpful in making your evaluation? Begin by computing the leverage ratio. Select the formula for the leverage ratio. Then complete the formula and calculate the leverage ratio. (Round your answer to two decimal places.) J = Leverage ratio Now, select the formula for the debt ratio. Then complete the formula and calculate the debt ratio. (Round your answer to two decimal places.) = Debt ratio Evaluate the health of the company from a leverage point of view. What other information would be helpful in making your evaluation? (Round the ratio to two decimal places.) The company's debt ratio and leverage ratios are , and operating income covers interest payments by times. With this limited information, the company appears to be risk from a leverage point of view. would also be helpful. Requirement 5. Independent of your answer to (4), assume that Footnote 8 of the financial statements includes commitments for operating leases over the next 15 years in the amount of $3,500,000. If the company had to capitalize these leases in 2018, how would it change the leverage ratio and the debt ratio? How would this impact your assessment of the company's health from a leverage point of view? Select the formula and compute the leverage ratio assuming that the company had to capitalize leases amounting to $3,500,000. (Round your answer to two decimal places.) = Leverage ratio Select the formula and compute the debt ratio assuming that the company had to capitalize leases amounting to $3,500,000. (Round your answer to two decimal places.) = Debt ratio How would this change impact your assessment of the company's health from a leverage point of view? The leverage ratio and debt ratio would The company would V from a leverage point of view. 0 Data Table 94,000 450,000 350,000 Mortgage note payable, current portion ........$ Leases payable (long-term) Bonds payable, long-term. Mortgage note payable long-term ............ Bonds payable, current portion ................ Interest expense ........ Total assets ...............$ 5,200,000 Accumulated depreciation, equipment ...... 167,000 Discount on bonds payable (all long-term) 29,000 Operating income .......... 400,000 314,000 314,000 Operating come .. 744,000 100,000 225,000 Equipment. Long-term investments (market value) ...... Interest payable ........... 420,000 76,000 Print Done Requirement 1. Show how each relevant item would be reported on the Braintree Foods classified balance sheet. Include headings and totals for current liabilities and long-term liabilities. Select the labels and then enter the amounts to complete the classified balance sheet. You will need to determine the total current assets value from the information provided and your calculations. Braintree Foods, Inc. Partial Balance Sheet December 31, 2018 Assets Liabilities Less: ess: Requirement 2. Answer the following questions about Braintree Food's financial position at December 31, 2018: a. What is the carrying amount of the bonds payable (combine the current and long-term accounts)? $ b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the Interest expense is the Requirement 3. How many times did Braintree Foods cover its interest expense during 2018? (Round your answer to two decimal places.) Braintree covered its interest expense times. Requirement 4. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. Assume the company only has common stock issued and outstanding. What other information would be helpful in making your evaluation? Begin by computing the leverage ratio. Select the formula for the leverage ratio. Then complete the formula and calculate the leverage ratio. (Round your answer to two decimal places.) J = Leverage ratio Now, select the formula for the debt ratio. Then complete the formula and calculate the debt ratio. (Round your answer to two decimal places.) = Debt ratio Evaluate the health of the company from a leverage point of view. What other information would be helpful in making your evaluation? (Round the ratio to two decimal places.) The company's debt ratio and leverage ratios are , and operating income covers interest payments by times. With this limited information, the company appears to be risk from a leverage point of view. would also be helpful. Requirement 5. Independent of your answer to (4), assume that Footnote 8 of the financial statements includes commitments for operating leases over the next 15 years in the amount of $3,500,000. If the company had to capitalize these leases in 2018, how would it change the leverage ratio and the debt ratio? How would this impact your assessment of the company's health from a leverage point of view? Select the formula and compute the leverage ratio assuming that the company had to capitalize leases amounting to $3,500,000. (Round your answer to two decimal places.) = Leverage ratio Select the formula and compute the debt ratio assuming that the company had to capitalize leases amounting to $3,500,000. (Round your answer to two decimal places.) = Debt ratio How would this change impact your assessment of the company's health from a leverage point of view? The leverage ratio and debt ratio would The company would V from a leverage point of view