Question

Please answer the below question/problem ASAP for MBA 560Financial and Managerial Accouting.

	Jona, Inc.
	Balance Sheets (Adapted)
	December 31, 2012 and 2011
					Increase (Decrease)
(Dollar amounts in millions)			2012	2011	Amount	Percentage
Assets
		Current Assets
		Cash and cash equivalents	$398	$310	$88	28.4	%
		Short-term investments	20	40	(20)	(50.0)
		Receivables, net	250	264	(14)	(5.3)
		Inventories	100	86	14	16.3
		Prepaid expenses and other assets	254	312	(58)	(18.6)
		Total current assets	1,022	1,012	10	1.0
		Property, plant, and equipment, net	3,680	3,336	344	10.3
		Intangible assets	1,050	818	232	28.4
		Other assets	818	726	92	12.7
		Total assets	$6,570	$5,892	$678	11.5	%

	Jona, Inc.
	Balance Sheets (Adapted)
	December 31, 2012 and 2011
					Increase (Decrease)
(Dollar amounts in millions)			2012	2011	Amount	Percentage
Liabilities and Stockholders' Equity
		Current Liabilities
		Accounts payable	$1,306	$1,206	$100	8.3	%
		Income tax payable	34	70	(36)	(51.4)
		Short-term debt	230	220	10	4.5
		Other	68	70	(2)	(2.9)
		Total current liabilities	1,638	1,566	72	4.6
		Long-term debt	2,406	1,756	650	37.0
		Other liabilities	1,158	1,066	92	8.6
		Total liabilities	5,202	4,388	814	18.6
		Stockholders' Equity
		Common stock	2	2	–	–
		Retained earnings	1,532	1,690	(158)	(9.3)
		Accumulated other comprehensive (loss)	(166)	(188)	22	11.7
		Total stockholders' equity	1,368	1,504	(136)	(9.0)
		Total liabilities and stockholders' equity	$6,570	$5,892	$678	11.5	%

Data Table

	Jona, Inc.
	Statements of Income (Adapted)
	Year Ended December 31, 2012 and 2011
		(Dollar amounts in millions)	2012	2011
		Revenues	$9,501	$9,319
		Expenses:
		Food and paper (Cost of goods sold)	2,529	2,624
		Payroll and employee benefits	2,139	2,181
		Occupancy and other operating expenses	2,443	2,365
		General and administrative expenses	1,207	1,098
		Interest expense	184	147
		Other expense (income), net	19	(36)
		Income before income taxes	980	940
		Income tax expense	286	269
		Net income	$694	$671

The financial statements of Jona, Inc., follow:

.
1.	Compute the company's debt ratio at December 31, 2012.
	2. Compute the company's times-interest-earned ratio for2012. For operating income, use income before both interest expenseand income taxes. You can simply add interest expense back toincome before taxes.
3.	Is Jona’s lability to pay liabilities and interest expensestrong or weak? Comment on the value of each ratio computed forquestions 1 and 2.

Select the formula and then enter the amounts to calculate thedebt ratio. (Enter amounts in million. Round your answer to threedecimal​ places.)

					/		=	Debt ratio
					/		=

2. Compute the company's times-interest-earned ratio for2012.

For operating income, use income before both interest expenseand income taxes. You can simply add interest expense back toincome before taxes. (Enter amounts in million. Round your answerto one decimal place.)

		/		=	Times-interest-earned ratio
		/		=

3. Is Jona's ability to pay liabilities and interest expensestrong or weak? Comment on the value of each ratio computed forrequirements 1 and 2.

The debt ratio is

▼

high

low

.

The times-interest earned ratio is

▼

high

low

.

Overall the​ company's ability to pay its liabilities andinterest expense looks

▼

bad

good

mixed

More

Less