Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need analysis for the leverage ratio above. need brief explnation for total debt ratio, cash coverage, debt equity ratio, equity multiplier and times interest earned.

Need analysis for the leverage ratio above. need brief explnation for total debt ratio, cash coverage, debt equity ratio, equity multiplier and times interest earned. compare the figures in both years. need this asap pls help me..

Leverage Ratio Year 2019 2018 Total Debt Ratio (5,688,205 - 2,554.141) 5.688,205 5,297,350 - 2,398,396) 5,297,350 (total asse 

= Leverage Ratio Total Debt Ratio (total asset total equity) total asset - total debt total equity = Debt Equity Ratio Equity Multiplier total asset total equity Times Interest Earned Interest Cash coverage (EBIT+ Depreciation) Interest 2019 (5,688,205 - 2,554,141) 5,688,205 = 0.55 times 3,134,064 2,554,141 5,688,205 2,554,141 432,588 79,601 = 1.227 79,601 = 2.22 = = 5.434 (432,588 188,817) = 7.806 Year 2018 (5,297,350-2,398,396) 5,297,350 = 0.54 times 2,898,954 2,398,396 5,297,350 2,398,396 522800 36,772 = = 1.208 = 2.20 14.217 (522,800+ 143,613) 7,923,725 = 0.0841

Step by Step Solution

3.43 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

A Cash coverage ratio The cash coverage ratio is useful for determining the amount of cash available ... 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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

10th edition

1260481956, 1260310175, 978-1260481952

More Books

Students also viewed these Accounting questions

Question

We are interviewing quite a few people, why should we hire you?

Answered: 1 week ago

Question

Convert the numeral to a HinduArabic numeral. A94 12

Answered: 1 week ago

Question

For any events A and B with , show tha .

Answered: 1 week ago