As you can tell from the financial statements, 2014 was an especially busy year.
ID: 2473242 • Letter: A
Question
As you can tell from the financial statements, 2014 was an especially busy year. Tony and Suzie were able to use the $1.39 million received from the issuance of 99,000 shares of stock and hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson.
6.
value:
10.00 points
Required information
Calculate the following risk ratios for 2014. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place. Omit the "%" sign in your response.)
7.
value:
10.00 points
Required information
Income statement and balance sheet data for Great Adventures, Inc., are provided below.Explanation / Answer
Risk ratio:
Debt to Capital = Total Debt / Total Capital
= 567,165 / 2,201,444
0.26
Debt to equity = Total Debt / Total equity
= 567,165 / 1,561,709
0.36
Time interest earned
= Income before interest and tax / interest expense
= 293,924/33615
= 8.74
Profitability raitos
Gross profit = gross profit/ sales
= 626,500/ 696000
= 90%
Return on assets
= net income/ total assets
= 203,509/2,201,444
= 9.24%
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