Accounting

protrude A (GAAP)2007 (,000) Current Liabilities $ 554,114 translatable subordinated debt 648,020 pith liabilities 1,228,313 Stockholders uprightness 176,413 light up Income 58,333 primitive Assets $ 1,404,726 (1,228,313+176,413) 1.Return on Assets profits Income/ tot up 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 canvas the Return on Assets and Return on Stockholders Equity ratios, Sepracor grade 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 place higher than the ind ustry average. This portrays a emf risk to investors and indicates that the 5% convertible bond certificate rate force be also low. If I was an investor, I would expect a higher bond rate which creates a higher return. This besides makes this a to a greater extent 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+326,413) Return on AssetsNet ! Income/Total Assets4.15%(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 society using iGAAP for the financial statements,...If you want to get a near essay, order it on our website: OrderCustomPaper.com

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