What is the debt-equity ratio


Problem: The following information should be used and PLEASE PROVIDE formulas used:

Nickel & Dime Company
2006 Income Statement
($ in thousands)

                                Net sales				           $5,680
				Less: Cost of goods sold	 	    4,060
				Less: Depreciation 		   	       420
				Earnings before interest and taxes   1,200
				Less: Interest paid			         30
				Taxable Income				   $1,170
				Less: Taxes				       410
				Net income				    $  760

Nickel & Dime Company
2005 and 2006 Balance Sheets
($ in thousands)

		                         2005      2006				      2005      2006
		Cash		         $   70    $  180	Accounts payable             $1,350    $1,170
		Accounts rec.	    980        840	Long-term debt  	        720       500
		Inventory	         1,560      1,990	Common stock    	      3,200     3,500
		Total		        $2,610    $3,010	Retained earnings	        940     1,200
		Net fixed assets   3,600     3,360	
		Total assets	$6,210    $6,370	Total liabilities & equity   $6,210    $6,370

Question 1.  In 2006, how many days on average did it take Nickel & Dime Company to sell its inventory?

Question 2.  What is the debt-equity ratio for 2006?

Question 3.  What is the times-interest-earned ratio for 2006?

Question 4.  What is the equity multiplier for 2006?

Question 5.  What is the return on equity for 2006? 

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