Use the Following Comparative Income Statements and Balance Sheets to Complete

question 46

Essay

Use the following comparative income statements and balance sheets to complete the required ratio analysis: Additional information:
All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding, 42,000. Required:
Analyze for 20-B and 20-C the extent to which this corporation is being financed by debt using the (a) ratio of liabilities to stockholders' equity, and analyze its ability to meet its debt obligation using the (b) times interest earned ratio. Indicate whether there has been an improvement or not from 20-B to 20-C. Round all answers to two decimal places.

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Definitions:

Worldwide Competition

The phenomenon where businesses or economies compete with each other across international borders for market share, resources, and talent.

Automation

The use of technology and machinery to perform tasks with minimal human intervention, often to increase efficiency, accuracy, and productivity in various industries.

Human Resources

The department within an organization that deals with recruitment, management, and direction of people.

Competency-Based

This approach focuses on identifying and developing specific skills and competencies within an organization to optimize performance and productivity.