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L My Drive x-E % Chapter 1 × Solomon × (36) TWE × G chegg St × G [The Follc × GEChegg × / D Chapters ezto.mheducation.com/hm.tpx?-0.7555930614701443 15104 17699399 Untitled: × value 1.00 points Brief Exercise 9-18 Calculate ratios (LO9-8) Surfs Up, a manufacturer of surfing supplies and training equipment, has the following selected data (S in millions) Surf's Up Selected balance sheet data Total assets Tolal liabilities Total stockholders' equity 2018 2017 735 S726 624 526 111 200 Surf's Up Selected income statement data Sales revenue Intcrest exponse Tax expense Net income 2018 $803 18 40 62 Based on these amounts, calculate the following ratios for 2018: (Do not round intermediate calculations. Round all final answers to 1 decimal place. Enter your answer in millions i.e. 5,500,000 should be entered as 5.5).) Debt to Equity Ratio Return on Assets Ratio 10:78 AM Type here to search 11/11/2017Explanation / Answer
Debt to Equity Ratio
Total Liabilities
Total Stakeholders Equity
=
5.6
624
111
Return on Assets
Net Income
Average total assets
=
8.5%
62
730.5
Computation of Average Assets
Total Assets as on 2018 Year end
735
Total Assets as on 2017 Year end
726
Average Assets
730.5
Times Interest earned Ratio
Net Income
+
Tax expense
+
Interest Expense
/
Interest Expense
=
6.7
62
40
18
18
Debt to Equity Ratio
Total Liabilities
Total Stakeholders Equity
=
5.6
624
111
Return on Assets
Net Income
Average total assets
=
8.5%
62
730.5
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