Question
Do Know Profit, Inc. 2018 statement of comprehensive income ($ in millions) Net sales $8800 Cost of goods sold 5600 Depreciation 900 Earnings before interest
| Do Know Profit, Inc. 2018 statement of comprehensive income ($ in millions) | |
| Net sales
| $8800 |
| Cost of goods sold | 5600 |
| Depreciation | 900 |
| Earnings before interest and taxes | 2300 |
| Interest paid | 350 |
| Taxable Income | 1950 |
| Taxes | 550 |
| Net income | 1400 |
| Dividends paid | 900 |
| Addition to retained earnings | 500 |
| Do Know Profit Inc. 2017 and 2018 Statement of financial positions ($ in millions) | |||||
|
| 2017 | 2018 |
| 2017 | 2018 |
| Cash | $170 | $110 | Accounts payable | 135 | 120 |
| A/R | 500 | 700 | Notes payable | 1200 | 1400 |
| Inventory | 1240 | 1000 | Total | 1335 | 1520 |
| Total | 1910 | 1810 | Long-term debt | 2005 | 2620 |
| Net fixed assets | 2000 | 3500 | Common stock | 100 | 200 |
|
|
|
| Retained earnings | 470 | 970 |
| Total Assets | 3910 | 5310 | Total liab. & equity | 3910 | 5310 |
Calculate the Current ratio, Debts ratio of 2017 and 2018. Calculate TIE of 2018. Give brief comments to each of the ratios
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
