Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is the financial information for Kirkmonds Inc. Income Statement Millions of $) 2013 Balance Sheet (Millions of 5) 2014 Assets Cash and securities $22,500

image text in transcribed
Below is the financial information for Kirkmonds Inc. Income Statement Millions of $) 2013 Balance Sheet (Millions of 5) 2014 Assets Cash and securities $22,500 Accounts receivable 13,500 Inventories 38,000 $23,000 12,400 40,500 Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Interest Eamings before taxes (EBT) 2014 $108, 360 84,750 3.500 $20, 110 Total current assets Net plant and equipment Total assets $74,000 $45.000 $75,900 $41,500 1,500 $18,610 $119,000 $117,400 Taxes Net income 6,513.50 $12,096.50 Other data $16.000 7,200 5,000 $28,200 $13,000 7,200 5,000 $25,200 Shares outstanding (millions) Common dividends 600 $637.59 Liabilities and Equity Accounts payable Interest payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity $27,800 $39,200 $56,000 $64,400 $15.000 $15.000 48,000 38.000 563.000 $33,000 $119,000 $117,400 After-tax cost of capital Federal plus state income tax rate Year-end stock price Capital Expenditure Total invested capital - Total assets 12.00% 358 $68.69 7,000 $ Industry Average Profit Margo Total Asset Turnover Equity Multiplier 0.12 1.1032 183 For the year 2014, how much is the ratio that tells about the extent to which interest payment is covered by cash? Round your answer to the second decimals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Management Of Business Finance

Authors: John Freear

1st Edition

0273014315, 978-0273014317

More Books

Students also viewed these Finance questions