Given the following Year 9 selected balance sheet data Assets Cash on Hand Total

Question

Given the following Year 9 selected balance sheet data Assets Cash on Hand Total Current Assets $136,000 255,000 230,000 $485,000 Total Fixed Asset Investments Total Assets Liabilities and Shareholder Equity Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans Total Current Liabilities Long Term Bank Loans Total Liabilities $ 66.000 10,000 17 000 93,000 46,000 139,000 Year 11 Year 12 Balance Change Shareholder Equity Common Stock (at a par value of S0 50 per share Additiona Capita Retained Earnings 010 050 081.500 162,45092 000 254450 254 000 +92 000 346000 10,050 81 500 Total Shareholder Equty s and the definition of the debteqity percentages o Based on the abow ges rounded to 2 decimas piaces) and its current companyàts dep eguiy p 40 60 and 274

Explanation / Answer

Debt% in this case = Total liabilities / Total Shareholder Equity

Hence, Debt % = 139,000 / 346,000 = 40.1% = ~40%

Equity % = 100% - 40% = 60%

Current ratio = Current assets / current liabilities = 255000 / 93000 = 2.74

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.