The accounting records of Brigham Foods, Inc, include the following items at December 31, 2018:
The accounting records of Brigham Foods, Inc., include the following items at December 31, 2018 (Click the icon to view the accounting records.) Read the requirements Requirement 1. Show how each relevant item would be reported on the Brigham Foods classified balance sheet. Include headings and totals for current liabilities and long-term Select the labels and then enter the amounts to complete the classified balance sheet. You will need to determine the total current assets value from the information provided and you calculations. (Abbreviations used: liab, - liabilities, NP notes payable, and pay.- payable.) Brigham Foods, Inc. Partial Balance Sheet December 31, 2018 Assets Liabilities Less: Less The accounting records of Brigham Foods, Inc, include the following items at December 31, 2018: (Click the icon to view the accounting records.) Read the requirements. The accounting records of Brigham Foods, Inc., include the following items at December 31, 2018: EEB (Click the icon to view the accounting records.) Read the requirements Requirement 2. Answer the following questions about Brigham Food's financial position at December 31, 2018: a. What is the carrying amount of the bonds payable (combine the current and long-term accounts)? $ b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the Interest expense is the Requirement 3. How many times did Brigham Foods cover its interest expense during 2018? (Round your answer to two decimal places.) Brigham covered its interest expense times Requirement 4. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. Assume the company only has common stock issued and outstanding. What other information would be helpful in making your evaluation? Begin by computing the leverage ratio. Select the formula for the leverage ratio. Then complete the formula and calculate the leverage ratio. (Round your answer to two decimal places.) Leverage ratio The accounting records of Brigham Foods, Inc., include the following items at December 31, 2018: EEB (Click the icon to view the accounting records.) Read the requirements Now, select the formula for the debt ratio. Then complete the formula and calculate the debt ratio. (Round your answer to two decimal places.) Debt ratio Evaluate the health of the company from a leverage point of view. What other information would be helpful in making your evaluation? (Round the ratio to two decimal places.) The company's debt ratio and leverage ratios are With this limited information, the company appears to be , and operating income covers interest payments bytimes risk from a leverage point of view. would also be helpful Requirement 5. Independent of your answer to (4), assume that Footnote 8 of the financial statements includes commitments for operating leases over the next 15 years in the amount of $3,300,000. If the company had to capitalize these leases in 2018, how would it change the leverage ratio and the debt ratio? How would this impact your assessment of the company's health from a leverage point of view? Select the formula and compute the leverage ratio assuming that the company had to capitalize leases amounting to $3,300,000. (Round your answer to two decimal places.) - Leverage ratio Select the formula and compute the debt ratio assuming that the company had to capitalize leases amounting to $3,300,000. (Round your answer to two decimal places.) Debt ratio - Delb decrease increase ealth from a How would this change impact your asse remain the same The company would The leverage ratio and debt ratio would the company had to d your answer to two d now be considered high risk. Debt now be considered really low risk. any's health from a k still be considered healthy (average risk) The company would lds and then continue to the next question. from a leverage point of view. Data Table Mortgage note payable, $ 94,000 Accumulated depreciation, 168,000 375,000 Discount on bonds payable 22,000 350,000 749,000 Mortgage note payable 228,000 Long-term investments 405,000 73,000 Print Done Requirements 1. Show how each relevant item would be reported on the Brigham Foods classified balance sheet. Include headings and totals for current liabilities and long-term liabilities. Answer the following questions about Brigham Food's financial position at December 31, 2018 a. What is the carrying amount of the bonds payable (combine the current and long-term amounts)? b. Why is the interest-payable amount so much less than the amount of interest expense? How many times did Brigham Foods cover its interest expense during 2018? Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. Assume the company only has common stock issued and outstanding. What other information would be helpful in making your evaluation? Independent of your answer to (4), assume that Footnote 8 of the financial statements includes commitments for long-term operating leases over the next 15 years in the amount of $3,300,000. If the company had to capitalize these leases in 2018, how would t change the leverage ratio and the debt ratio? How would this impact your assessment of the company's health from a leverage point of view? 2. 3. 4. 5. Print Done
