Accounting

protrude A (GAAP)2007 (,000) Current Liabilities $ 554,114 translatable subordinated debt 648,020 follow liabilities 1,228,313 Stockholders candour 176,413 light up Income 58,333 essence Assets $ 1,404,726 (1,228,313+176,413) 1.Return on Assets profits Income/ thorough Assets4.15%(58,333/1,404,726) 2.Return on Stockholders lawNet Income/Stockholders Equity33.07%(58,333/176,413) 3.Debt to assets ratioTotal Debt/Total Assets87.44%(1,228,313/1,404,726) Part B Sepracor seems to be in a growing phase, using redeemable debt and current liabilities to finance a significant part of the corporations operations. When compare the Return on Assets and Return on Stockholders Equity ratios, Sepracor place above the industry average. This indicates that Sepracor is strong in converting earnings to equity. When it comes to the Debt to Assets Ratio, Sepracor rank higher than the indus try average. This portrays a emf risk to investors and indicates that the 5% convertible alinement rate force be similarly low. If I was an investor, I would expect a higher bond rate which creates a higher return. This besides makes this a more attractive investment.

Part C (iGAAP)2007 (,000) Current Liabilities $ 554,114 Convertible subordinated debt 498,020 (648,020-150,000) Total liabilities 1,078,313 (107,8313-150,000) Stockholders equity 326,413 (176,413+150,000) Net Income 58,333 Total Assets $ 1,404,726 (1,078,313+326,41 3) Return on AssetsNet Income/Total Asset! s4.15%(58,333/1,404,726) Return on Stockholders EquityNet Income/Stockholders Equity17.87%(58,333/326,413) Debt to assets ratioTotal Debt/Total Assets76.76%(1,078,313/1,404,726) When comparing Sepracor to an external political party using iGAAP for the financial statements,...If you want to get a spacious essay, order it on our website: OrderCustomPaper.com

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