Fill in the values for (a) through (i)............ I get caught whe moving to li
ID: 2381864 • Letter: F
Question
Fill in the values for (a) through (i)............ I get caught whe moving to liabilities section
DEBT Ratio- 50%
CURRENT Ratio- 1.2
Assets
Current Assets:
Cash........................... (a)
Accunts Receivable 55,000
Total Current Assets... (b)
Long term Debt......... 35,000
Propoerty, Plant, & Equipment: 120,000
Totals Assets............ (c)
Liabilities & Stockholder' Equity
Current Liabilities:
Accounts Payable............ 64,000
Income taxes payable (d)
Totals current Libitilies 80,000
Long term Liabilities........ (e)
Total Liabilities..... (f)
Stockholder's Equity:
Paid-In Capital.............. (g)
Retained Earnings........... 78,500
Total Stockholders' Equity (h)
Total Liabilities and Stockholders' Equity (i)
Explanation / Answer
INCOME TAXES PAYABLE = Totals current Libitilies-Accounts Payable
= 80000-64000
=16000
CURRENT RATIO = Total Current Assets/Totals current Libitilies
1.2 = Total Current Assets/80000
Total Current Assets = 96000
CASH = Total Current Assets-ACCOUNTS RECIEVABLE
= 96000 - 55000
=41000
TOTAL ASSET = Total Current Assets+Long term Debt+Propoerty, Plant, & Equipment:
=96000+35000+120000
=251000
DEBT RATIO = 50%
DEBT/EQUITY = 0.5
DEBT = 0.5 EQUITY
Total Liabilities and Stockholders' Equity = TOTAL ASSET = 251000
Total Liabilities and Stockholders' Equity = Totals current Libitilies+Long term Liabilitie+Total Stockholders' Equity [USING :-DEBT = 0.5 EQUITY]
251000 = 80000 + 0.5Total Stockholders' Equity + Total Stockholders' Equity
1.5Total Stockholders' Equity = 171000
Total Stockholders' Equity = 114000
Paid-In Capital. = Total Stockholders' Equity -Retained Earnings.
Retained Earnings. = 114000-78500 = 35500
Long term Liabilities = 0.5Total Stockholders' Equity
=0.5*114000
=57000
Total Liabilities. = Totals current Libitilies +Long term Liabilities...
=80000 + 57000
=137000
=
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