Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data are for the 2018 fiscal year of Meme Me Corporation and Sozhal Incorporated. All dollar amounts are in thousands. Account Title Current

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following data are for the 2018 fiscal year of Meme Me Corporation and Sozhal Incorporated. All dollar amounts are in thousands. Account Title Current assets Total assets Current liabilities Total Habilities Stockholders' equity Interest expense Income tax expense Net Income Heme-Me Sozhal Corporation Incorporated $135,821 551,075 233,766 98,185 34,871 7,049 55,839 13,304 177,92784,864 133 25 4,240 3,270 31,609 22,466 Required a. Calculate the EBIT for each company b. Calculate each company's debt-to-assets ratio, current ratio, and the times-interest earned ratio c. Calculate each company's retum-on-assets ratio using EBIT instead of net earnings. Calculate each company's return-on-equity ratio using net earnings d. Meme-Me Corporation reported interest expense of $133 million, before taxes. What was its after-tax interest expense in dollars? (Hint You will need to compute its tax rate by dividing income tax expense by earnings before taxes, which must be computed) Complete this question by entering your answers in the tabs below. Reg A Reg B and C Reg D Calculate the EBIT for each company. Meme Me Sozhal Corporation Incorporated EBIT (RA Req Band C > Reg A Reg B and C Reg D b. Calculate each company's debt-to-assets ratio, current ratio, and the times-interest-earned ratio. C. Calculate each company's return-on-assets ratio using EBIT instead of net earnings. Calculate each company's return-on- equity ratio using net earnings. (Round the Current ratio to 2 decimal places and the Times interest earned ratio to the nearest whole number. Round all other answers to 1 decimal place.) Show less b. Debt-to-assets ratio Current ratio Times interest-eamed ratio c Return-on-assets ratio Roturn-on-equity ratio Meme-Mo Corporation % to 100 times Sortial incorporated % to 100 times % % % % Complete this question by entering your answers in the tabs below. ReqA Req B and C Reg D Meme Me Corporation reported interest expense of $114 million, before taxes. What was its after-tax interest expense in dollars? (Hint: You will need to compute its tax rate by dividing income tax expense by earnings before taxes, which must be computed.) (Enter your answer in millions (e.g. $4,000,000 would be entered as $4). Round your intermediate calculations to 1 decimal place. Round your answer to 2 decimal places.) Show less After-tax Interest expense

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_2

Step: 3

blur-text-image_3

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

Introduction To Accounting

Authors: Peter Scott

2nd Edition

0198849966, 978-0198849964

More Books

Students also viewed these Accounting questions

Question

=+4. What might explain any differences that you identify?

Answered: 1 week ago

Question

=+2. Is there a strong collective bargaining culture in evidence?

Answered: 1 week ago