The following information applies to the questions displayed below.J Thrillville

Question

The following information applies to the questions displayed below.J Thrillville has $39.2 million in bonds payable. One of the contractual agreements in the bond indenture is that the debt to equity ratio cannot exceed 2.0. Thrillville's total assets are $79.2 million, and its liabilities other than the bonds payable are $9.2 million. The company is considering some additional financing through leasing. value: Required information 5.88 points Required 1. Calculate total stockholders' equity using the balance sheet equation. (Enter your answer in millions rounded to 1 decimal place. (i.e., $5,500,000 should be entered as 5.5).) Stockholders' Equity Assets Liabilities

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Q6 1 Total Assets 79,200,000.00 Total Liabilities = 39.2m + 9.2m 48,400,000.00 Stockholders Equity 30,800,000.00 Q7 2 Total Liabilities 48,400,000.00 Stockholders Equity 30,800,000.00 Debt to Equity ratio = 48.4/30.8m                      1.57 Q8 Yes if the lease agreement is recorded as operating lease then the liabilities would have been reduced by 14.2m

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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