The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $710,000 $350,000 Current maturities of serial bonds payable 620,000 620,000 Serial bonds payable, 10% 2,830,000 3,450,000 Common stock, $1 par value 110,000 130,000 Paid-in capital in excess of par Retained earnings 1,140,000 1,150,000 3,950,000 3,140,000 The income before income tax expense was $1,380,000 and $1,207,500 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Current year Previous year b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Current year Previous year Three major segments of the transportation industry are motor carriers, such as Atlantic; railroads, such as Pacific; and transportation arrangement services, such as Mediterranean. Recent financial statement information for these three companies is shown as follows (in thousands of dollars): Sales Average total assets Atlantic Pacific $6,228,000 3,460,000 $48,344,000 60,430,000 Mediterranean $17,366,000 4,570,000 a. Determine the asset turnover for all three companies. Round your answers to one decimal place. Atlantic Pacific Mediterranean The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 December 31 December 31 20Y7 20Y6 20Y5 Total assets $280,000 $252,000 $224,000 Notes payable (8% interest) 90,000 90,000 90,000 Common stock 36,000 36,000 36,000 Preferred 5% stock, $100 par (no change during year) Retained earnings 18,000 120,160 18,000 82,180 18,000 54,000 The 2017 net income was $38,880, and the 20Y6 net income was $29,080. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round your answers to one decimal place. Return on total assets Return on stockholders' equity Return on common stockholders' equity 20Y7 20Y6 % % % % % % Since the return on assets is less than the return on stockholders' equity in b. The profitability ratios indicate that the company's profitability has improved both years, there must be positive leverage from the use of debt. East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands): Fiscal Year 3 Fiscal Year 2 Net income $129,300 Interest expense 2,600 $66,600 9,900 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 $2,876,543 939,518 $2,736,223 920,914 $2,363,777 683,906 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders' equity is 15.0% for the year ended April 2, Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 Fiscal Year 2 % % b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 Fiscal Year 2 % % c. The return on stockholders' equity is greater than d. During fiscal Year 3, East Point's results were weak average. The return on stockholders' equity was less industry, on average. the return on total assets due to the positive use of leverage. compared to the industry average. The return on total assets for East Point was less than the industry average. These relationships suggest that East Point has less than the industry leverage than the Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements for both companies for two recent years is as follows (in millions): Line Item Description Sales Credit card receivables-beginning Credit card receviables-ending Xavier $8,500,000 820,000 880,000 Lestrade $4,585,000 600,000 710,000 a. Determine the (1) accounts receivable turnover and (2) the days' sales in receivables for both companies. Round your calculations and answers to one decimal place. Assume 365 days a year. Line Item Description 1. Accounts receivable turnover Xavier Lestrade 2. Days' Sales in Receivables days days Hasbro, Inc. (HAS) and Mattel, Inc. (MAT) are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands): Liabilities: Current liabilities Long-term debt Total liabilities Total stockholders' equity Total liabilities and stockholders' equity Hasbro Mattel $1,257,082 $1,276,907 4,603,016 3,556,605 $5,860,098 $4,833,512 $2,995,530 $491,714 $8,855,628 $5,325,226 The operating income and interest expense from the income statement for each company were as follows (in thousands): Operating income (before income tax expense) Interest expense Hasbro Mattel $594,210 $(158,288) 101,878 201,044 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place. Hasbro Inc. Mattel Inc. b. Determine the times interest earned ratio for both companies. Round your answers to one decimal place. Hasbro Inc. Mattel Inc.