You also know that the outstanding debt has been constant over the past few years. 2021 2022 Assets 1500 Debt 1000 ◆ 1602.41 1000 Equity 500 602.41 Sales 300 357.0 COSTS(incl DA) 57.0 67.83 EBIT 243.0 289.17 Interest 110.0 110.0 EBT 133.0 179.17 Taxes 30.59 41.21 EAT 102.41 137.96 1. Find the leverage ratio in 2022: 2. Find the asset turnover for 2022:
You also know that the outstanding debt has been constant over the past few years. 2021 2022 Assets 1500 Debt 1000 ◆ 1602.41 1000 Equity 500 602.41 Sales 300 357.0 COSTS(incl DA) 57.0 67.83 EBIT 243.0 289.17 Interest 110.0 110.0 EBT 133.0 179.17 Taxes 30.59 41.21 EAT 102.41 137.96 1. Find the leverage ratio in 2022: 2. Find the asset turnover for 2022:
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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Question
Some parts of the balance sheet and income statement of PaintsWorld Enterprises is given below.
You know that the effective tax rate is 23.0% and the interest rate the company pays on its long-term debt is 11.0%.
You also know that the outstanding debt has been constant over the past few years.
1.Find the leverage ratio in 2022:
2. Find the asset turnover for 2022:
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