Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price
Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was 578 at the end of 2014 Make sure the unit is in million dollars. unit: $ in millions) Southeast Systems Balance Sheets 2014 2015 2014 2015 Cash $50 $100 Accounts payable $450 $500 Accounts receivable 600 700 Notes payable 300 400 Inventory 500 550 Long-term debt 650 650 Net fixed assets 1.000 1.000 Common equity 300 300 Retained earnings 450 500 Total Assets $2,250 $2,350 Total Liabilities,& $2,150 $2,350 Owner's Equity Income Statement Sales Cost of goods sold Deprestation EBIT Interest expenses Table income 2015 $2,370 2,070 200 100 20 eo 28 552 52 Net income Olvidends 200 Depreciation EBIT Interest expenses Taxable income Taxes Net income Dividends 100 20 80 28 $52 $2 What is the value of the interest coverage ratio for 2015? 2.6 times 0 4.0 times 5.0 times O 10.0 times 118.5 times
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started