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Business & Finance homework help

Business & Finance homework help. Ratio Analysis Exercises and Problems
Use the data for Tolito Treats, Inc., below, to do the assigned problems.

  1. Compute      the following earnings coverage ratios:
    1. Earnings       to fixed charges.
    2. Cash       flow to fixed charges.
    3. Earnings       coverage of preferred dividends.
  2. Analyze      and interpret the earnings coverage ratios in (A).

Tolito Treats, Inc. Consolidated Income Statement ($   thousands)
  Year Ending December 31, 2015
Undistributed Income of Less Than 50%-Owned Affiliates
Total Revenue
Cost of Goods Sold
Selling and Administrative Expenses
Rental Expense
Share of Minority Interest in Consolidated Income
Interest Expense
Income Before Taxes
Income Taxes
Net Income
Less Dividends
Common Stock
Preferred Stock
Earnings Retained for the Year
Additional Information:

  1. The      following changes occurred in current assets and current liabilities for      2015:

Current Accounts
Increase (Decrease)
Current Accounts
Increase (Decrease)
Accounts Receivable
Notes Payable to Bank
Accounts Payable
Dividend Payable

  1. The effective tax rate is      40%.
  2. Shares      of minority interests in consolidated income do not have fixed charges.
  3. Interest      expenses include:

Interest Incurred (Except Items Below)
Amortization of Bond Premium
Interest on Capitalized Leases
Interest Incurred
Less Interest Capitalized
Interest Expense

  1. Amortization      of previously capitalized interest (included in depreciation) is $60.
  2. Interest      implicit in operating lease rental payment (included in rental expense) is      $120.

Your submission should:

  • Be full      2 pages for the written portion (not including reference page which you      must include)
  • Include      the Excel spreadsheet with computations.
  • Clearly      separate your responses so your instructor knows the problems you are      answering.
  • Follow      the APA format.

Chapter 10 in Financial Statement Analysis
Archibald, G. (2018). Figuring out your balance sheet financial ratios and operating ratios. Rochester Business Journal, 34(32), 28-29.
DeAngelo, H., & Roll, R. (2016). Capital structure instability. Journal of Applied Corporate Finance, 28(4), 38–52. (To view this reading, please open the link provided and download the “PDF full text.”)
Zarb, B. J. (2018). Liquidity, solvency, and financial health: Do they have an impact on U.S. airline companies’ profit volatility? International Journal of Business, Accounting and Finance, 12(1), 42-51. (To view this reading, please open the link provided and download the “PDF full text.”)
Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962

Business & Finance homework help


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