财务会计双语教学FinancialAccountingWeygandtKiesoKimmelch15.ppt

“备”则“倍” 有准备、有规划的人生更精彩！ Quality Department Store 2003 2002 $12.00 $ 8.00 ——— = 12.4 times ——— = 10.4 times $ .97 $ .77 Industry average Sears, Roebuck and Co. ———————— ——————————— 26 times 3.8 times PRICE TO EARNINGS 2003 2002 $61,200 $60,000 ————— = 23.2% ————— = 28.8% $263,800 $208,500 Industry average Sears, Roebuck and Co. ———————— ——————————— 16.0% 9.6% Quality Department Store PAYOUT RATIO A PROFITABILITY RATIO Quality Department Store 2003 2002 $468,000 $388,000 ———— = 13 times ———— = 9.6 times $36,000 $40,500 TIMES INTEREST EARNED A SOLVENCY RATIO Income before Income Taxes and Interest Expense Interest Expense Measures ability to meet interest payments as they come due. Industry average Sears, Roebuck and Co. ———————— ———————————— 40.1% 76.9% $832,000 = 45.30% $800,000 = 50.20% $1,835,000 $1,595,000 2003 2002 Quality Department Store DEBT TO TOTAL ASSETS A SOLVENCY RATIO Measures % of total assets provided by creditors Total Debt Total Assets 2.22 = (125000+342500+780000) / 562000 REVIEW QUESTION Ace Ventura Pet Detective, Inc. reported the following: Cash $125,000 Marketable Securities $342,500 Accounts Receivable $780,000 Inventory $56,000 Prepaid Insurance $3,600 Prepaid Rent $4,900 Total Assets $1,729,000 Current Liabilities