Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Debt to equity, debt as a percentage of total capitalization, and interest coverage) The following financial information relates to Artscan Enterprises Inc. (amounts in thousands):

(Debt to equity, debt as a percentage of total capitalization, and interest coverage) The following financial information relates to Artscan Enterprises Inc. (amounts in thousands):

2018 2019 2020

Income before depreciation, amortization, interest, and taxes

$1,750 $2,722 $2,993

Interest expense

157 316 441

Cash

53 118 227

Current liabilities (does not include any debt)

631 733 1,169

Bank loan payable (all long-term)

2,120 3,820 4,470

Shareholders equity

4,605 5,560 6,695

(a) Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.)

Debt to equity ratio Net debt as a percentage of total capitalization Interest coverage

2018

Enter percentages. % Enter percentages. % Enter a number of times. times

2019

Enter percentages. % Enter percentages. % Enter a number of times. times

2020

Enter percentages. % Enter percentages. % Enter a number of times. times

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

Step: 3

blur-text-image

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

Analytical Corporate Finance

Authors: Angelo Corelli

1st Edition

3319395483, 9783319395487

More Books

Students also viewed these Accounting questions

Question

Why is succession planning important?

Answered: 1 week ago

Question

When did the situation become unable to be resolved? Why?

Answered: 1 week ago