Question
The following list of accounts were provided for Cineplex. in their Annual Report 2020 2019 Net Sales $1,955,067 $1,578,326 Interest expense 22,734 18,936 Income tax
The following list of accounts were provided for Cineplex. in their Annual Report
| 2020 | 2019 |
Net Sales | $1,955,067 | $1,578,326 |
Interest expense | 22,734 | 18,936 |
Income tax expense | 27,490 | 31,327 |
Net Income | 77,346 | 87,991 |
Total current assets | 245,172 | 182,187 |
Total assets | 1,955,168 | 1,828,186 |
Total current liabilities | 515,324 | 402,039 |
Total liabilities | 1,143,392 | 976,291 |
Total shareholders' equity | 711,776 | 751,895 |
Market price per share | 66.94 | 78.87 |
Number of Common Shares | 563,474 | 563,451 |
Cash Dividend per share | 5.50 | 5.60 |
Calculate the following Ratios for 2020
Asset Turnover | Times Interest Earned | Return on Assets |
Current Ratio | Profit Margin | Return on Equity |
Debt to Total Assets | Dividend Yield |
|
b. Indicate whether each of the above ratios is a measure of liquidity (L), solvency (S), profitability (P) or market (M).
c. Interest Expense has increased by over 20%. What could be a reason why this has increased?
d. Which ratios would be most important to a bank in determining if a loan should be granted. If you were the VP of loans for the Toronto Dominion Bank would you approve a $75 million loan to this company?
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