Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Husain, Inc.'s income statement and other financial information for the current year is presented below. Hussain, Inc. Income Statement For the year ended December 31

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Husain, Inc.'s income statement and other financial information for the current year is presented below. Hussain, Inc. Income Statement For the year ended December 31 Sales revenue Cost of goods sold Gross profit Selling, general and administrative expenses Operating income Interest expense Income before taxes Income tax expense Net income $204,131 73,360 130,771 13,635 117,136 4,197 112,939 4,314 $108,625 Balance sheet information: Current assets Noncurrent assets Current Ilabilities Long-term debt $254,500 509,000 59,000 118,000 Required: 0. Perform vertical analysis of the income statement b. Calculate the debt-to-assets ratio Required A Required B Required C Perform vertical analysis of the income statement. (Round your answers to the nearest whole percent.) Percent (%) HUSSAIN, INC. Income Statement For the year ended December 31 Amount Sales revenue $ 204, 131 Cost of goods sold 73,360 Gross profit 130.771 Selling, general and administrative expenses 13,635 Operating income 117,136 Interest expense Income before taxes 112,939 Income tax expense 4,314 Net income $ 108,625 4.197 b. Calculate the debt-to-assets ratio. c. Calculate the times interest earned ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate the debt-to-assets ratio. (Round your answer to 2 decimal places.) Debt-to-assets Ratio a. Perform vertical analysis of the income statement b. Calculate the debt-to-assets ratio. c. Calculate the times interest earned ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate the times interest earned ratio. (Round your answer to 2 decimal places.) Interest Eamed Ratio

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

Sound Investing, Chapter 11 - Crafty Comprehensive Income

Authors: Kate Mooney

1st Edition

0071719334, 9780071719339

More Books

Students also viewed these Accounting questions

Question

What factors in Nooyis Five C model facilitate employee trust?

Answered: 1 week ago