1 2 A B Long-Term Liabilities Calculate the leverage ratio, debt ratio, and times-interest-earned ratio, and evaluate debt-paying ability Examine the following selected financial information for The Deal Corporation and Simple Stores, Inc., as of the end of their 4 fiscal years ending in 2018 The Deal Corporation Simple Stores, Inc. In millions 1. Total assets 2. Total common stockholders' equity 3. Operating income 4. Interest expense 5. Leverage ratio 6. Total debt 7. Debt ratio 8. Times interest earned 16,870 $ 203,130 71,310 26,930 2,050 3,080 1,400 $ 87 $ 9 10 12 13 14 15 16 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab 17 you will be marked wrong. 18 19 Requirement 20 Complete the table, calculating all the requested information for the two companies 21 Use year-end figures in place of averages where needed for the purpose of calculating the ratios Calculate the debt ratio as a decimal a. b. 23 24 25 Saving & Submitting Solution 26 1 Save file to desktop 27 28 29 2 Upload and submit your file to be graded 30 31 32 a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS b.Save your solution in the folder you just created; add -solution-date to end of file name a.Navigate back to the activity window-screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open c. Click Upload button under step 3 d Click Submit button under step 4 34 35 36 Viewing Results 37 1 Click on Results tab in MyAccountingla!b 38 2 Click on the Assignment you were working on 39 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback 40 Complete the table, calculating all the requested information for the two companies. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) 1 2 The Deal Corporation Simple Stores, Inc 5 5. Leverage ratio 6 6. Total debt 7 7. Debt ratio 8 8. Times interest earned 10 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 43 INSTRUCTIONS ENTERANSWERS+