Question 1 : Using the following selected income statement data for KRJ Enterprises, calculate the debt service coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00.
|
Sales
|
$13,194
|
|
Cost of goods sold
|
7,166
|
|
Cash operating expenses*
|
2,175
|
|
Depreciation and amortization expense
|
1,518
|
|
Operating earnings (EBIT)
|
6,690
|
|
Interest expense
|
862
|
|
Tax expense
|
1,177
|
2. included in the cash operating expenses are $917 of operating lease expenses
3. In addition, $271 of interest was capitalized during the year debt principal of $1,395 was repaid.
Question 2: Using the following excerpts from the financial statements of KRJ Enterprises, calculate the debt ratio, using total financial debt in the numerator. Present your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Cash
|
$177
|
|
Short-term investments
|
$295
|
|
Accounts receivable
|
$384
|
|
Inventory
|
$411
|
|
Other current assets
|
$179
|
|
Fixed assets (net)
|
$1,057
|
|
Intangible assets
|
$207
|
|
Long-term investments
|
$295
|
|
Total assets
|
$3,500
|
|
|
|
|
Short-term debt
|
$106
|
|
Current portion of long-term debt
|
$62
|
|
Accounts payable
|
$232
|
|
Accrued liabilities
|
$190
|
|
Other current liabilities
|
$110
|
|
Long-term debt
|
$628
|
|
Other long-term liabilities
|
$102
|
|
Total liabilities
|
$2,055
|
|
Stockholders' equity
|
$1,379
|
|
Total liabilities and equity
|
$3,500
|
Question 3 : Using the following selected income statement data for KRJ Enterprises, calculate the EBITDAR coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00.
|
Sales
|
$13,799
|
|
Cost of goods sold
|
6,958
|
|
Cash operating expenses*
|
2,221
|
|
Depreciation and amortization expense
|
1,094
|
|
Operating earnings (EBIT)
|
7,161
|
|
Interest expense
|
780
|
|
Tax expense
|
1,106
|
2. included in the cash operating expenses are $1,081 of operating lease expenses
3. In addition, $360 of interest was capitalized during the year debt principal of $1,085 was repaid.
Question 4 : Using the following excerpts from the financial statements of KRJ Enterprises, calculate the debt ratio, using total liabilities in the numerator. Present your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Cash
|
$179
|
|
Short-term investments
|
$236
|
|
Accounts receivable
|
$378
|
|
Inventory
|
$406
|
|
Other current assets
|
$190
|
|
Fixed assets (net)
|
$1,040
|
|
Intangible assets
|
$176
|
|
Long-term investments
|
$337
|
|
Total assets
|
$3,500
|
|
|
|
|
Short-term debt
|
$189
|
|
Accounts payable
|
$221
|
|
Accrued liabilities
|
$180
|
|
Other current liabilities
|
$113
|
|
Long-term debt
|
$674
|
|
Other long-term liabilities
|
$125
|
|
Total liabilities
|
$2,084
|
|
Stockholders' equity
|
$1,352
|
|
Total liabilities and equity
|
$3,500
|
Question 5 : Using the following excerpts from the financial statements of KRJ Enterprises, calculate the debt-equity ratio, using total financial debt in the numerator. Present your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Cash
|
$130
|
|
Short-term investments
|
$271
|
|
Accounts receivable
|
$347
|
|
Inventory
|
$411
|
|
Other current assets
|
$242
|
|
Fixed assets (net)
|
$1,061
|
|
Intangible assets
|
$215
|
|
Long-term investments
|
$267
|
|
Total assets
|
$3,500
|
|
|
|
|
Short-term debt
|
$117
|
|
Current portion of long-term debt
|
$67
|
|
Accounts payable
|
$211
|
|
Accrued liabilities
|
$192
|
|
Other current liabilities
|
$134
|
|
Long-term debt
|
$628
|
|
Other long-term liabilities
|
$150
|
|
Total liabilities
|
$2,133
|
|
Stockholders' equity
|
$1,428
|
|
Total liabilities and equity
|
$3,500
|
Question 6 : Using the following selected income statement data for KRJ Enterprises, calculate the interest coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00.
|
Sales
|
$12,080
|
|
Cost of goods sold
|
8,317
|
|
Cash operating expenses*
|
2,064
|
|
Depreciation and amortization expense
|
1,015
|
|
Operating earnings (EBIT)
|
6,028
|
|
Interest expense
|
611
|
|
Tax expense
|
1,162
|
3. included in cash operating expenses are $847 of operating lease expenses
4. In addition, $329 of interest was capitalized during the year and debt principal of $1,420 was repaid.
Question 7: Using the following excerpts from the financial statements of KRJ Enterprises, calculate the debt to tangible net worth ratio, using total financial debt in the numerator. Present your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Cash
|
$143
|
|
Short-term investments
|
$287
|
|
Accounts receivable
|
$331
|
|
Inventory
|
$432
|
|
Other current assets
|
$177
|
|
Fixed assets (net)
|
$1,039
|
|
Intangible assets
|
$232
|
|
Long-term investments
|
$289
|
|
Total assets
|
$3,500
|
|
|
|
|
Short-term debt
|
$126
|
|
Current portion of long-term debt
|
$57
|
|
Accounts payable
|
$279
|
|
Accrued liabilities
|
$192
|
|
Other current liabilities
|
$76
|
|
Long-term debt
|
$623
|
|
Other long-term liabilities
|
$127
|
|
Total liabilities
|
$2,118
|
|
Stockholders' equity
|
$1,425
|
|
Total liabilities and equity
|
$3,500
|
Question 8 : Reviewing the income statement and cash flow statement from KRJ Enterprises, you find the following items: Net income of $856 million, interest expense of $146 million, tax expense of $369 million, cash flow from operations of $657 million, interest paid of $97 million, and taxes paid of $267 million. Calculate the cash interest coverage for the company. Present your answer rounded to two decimal places. e.g. 20.00.
Question 9 : Using the following excerpts from the financial statements of KRJ Enterprises, calculate the debt-equity ratio, using total liabilities in the numerator. Present your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Cash
|
$153
|
|
Short-term investments
|
$247
|
|
Accounts receivable
|
$307
|
|
Inventory
|
$459
|
|
Other current assets
|
$203
|
|
Fixed assets (net)
|
$1,056
|
|
Intangible assets
|
$172
|
|
Long-term investments
|
$266
|
|
Total assets
|
$3,500
|
|
|
|
|
Short-term debt
|
$115
|
|
Accounts payable
|
$294
|
|
Accrued liabilities
|
$222
|
|
Other current liabilities
|
$51
|
|
Long-term debt
|
$630
|
|
Other long-term liabilities
|
$121
|
|
Total liabilities
|
$2,080
|
|
Stockholders' equity
|
$1,416
|
|
Total liabilities and equity
|
$3,500
|
Question 10 : Using the following selected income statement data for KRJ Enterprises, calculate the EBITDA coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00.
|
Sales
|
$13,666
|
|
Cost of goods sold
|
8,974
|
|
Cash operating expenses*
|
2,267
|
|
Depreciation and amortization expense
|
1,808
|
|
Operating earnings (EBIT)
|
7,784
|
|
Interest expense
|
794
|
|
Tax expense
|
1,149
|
2. included in the cash operating expenses are $774 of operating lease expenses
3. In addition, $489 of interest was capitalized during the year debt principal of $1,167 was repaid.