Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tamarisk Gas Inc., an oil and gas company had the following information on its financial statements for the fiscal years ended December 31. All figures

Tamarisk Gas Inc., an oil and gas company had the following information on its financial statements for the fiscal years ended December 31. All figures are in millions of dollars.

2021 2020 2019 2018
Total assets $9,510 $6,380 $2,997 $2,763
Total liabilities 5,842 2,697 2,169 1,684
Profit 1,390 461 35 285
Interest expense 109 74 58 50
Income tax expense (recovery) 603 222 (25) 178

A)

Calculate Tamarisks (Round answers to 1 decimal place, e.g. 52.7 or 52.7%.)

(1) Debt to total assets ratio for 2018 through 2021
(2) Interest coverage ratio for 2018 through 2021
2021 2020 2019 2018
(1) Debt to total assets ratio % % % %
(2) Interest coverage ratio times times times times

B)

Determine from the results obtained in part (a) if Tamarisks

(1) Debt to total assets improved or deteriorated from 2020 to 2021 Deteriorated or Improved
(2) Debt to total assets improved or deteriorated from 2018 to 2019 Improved or Deteriorated
(3) Interest coverage ratio improved or deteriorated from 2020 to 2021 Deteriorated or Improved
(4) Interest coverage ratio improved or deteriorated from 2019 to 2020 Improved or Deteriorated
(5) Interest coverage ratio improved or deteriorated from 2018 to 2019 Deteriorated or Improved

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

Auditing

Authors: Alan Millichamp, John Taylor

11th Edition

1473749301, 978-1473749306

More Books

Students also viewed these Accounting questions

Question

Write short notes on Interviews.

Answered: 1 week ago