30,000 Account payable EXERCISE 2 Paper spa is a company that produces papers and recycles cardboards. It has the following Balance Sheet at the end of 2019 (data expressed in Euro): 2019 Llabilities 500,000 Paid in capital 300,000 Retained earnings 250,000 Net income Assets 2019 Fixed assets 200,000 500,000 Cash 230,000 Prepayments 55,000 43,000 Taxes debt Bank debt 52,000 Total assets 1080,000 Totals liabilitles 1080,000 Donnd on this information: 06614 $206614

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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EXERCISE 2
Paper spa is a company that produces papers and recycles cardboards. It has the following Balance
Sheet at the end of 2019
9(data expressed in Euro):
Assets
Fixed assets
2019 Llabilities
500,000 Paid in capital
300,000 Retained earnings
250,000 Net income
30,000 Account payable
WIP inventory
Cash
2019
200,000
500,000
230,000
Total assets
Taxes debt
55,000
43,000
Bank debt
1080,000 Totals llabilitles
52,000
Based on this information:
1080,000
1) Evaluate company's strength by calculating Acid Test, Equity Ratio and the shareholder equity ratio.
14.010
2)
How do you evaluate the choice
company's situation?
to
purchase a new building with a new loan to reinforce the
614 01of
ofylio
1070 s2
$20661
$20661
ofyl
$20061
206614
V070 s20
$20661
21 p107
Transcribed Image Text:EXERCISE 2 Paper spa is a company that produces papers and recycles cardboards. It has the following Balance Sheet at the end of 2019 9(data expressed in Euro): Assets Fixed assets 2019 Llabilities 500,000 Paid in capital 300,000 Retained earnings 250,000 Net income 30,000 Account payable WIP inventory Cash 2019 200,000 500,000 230,000 Total assets Taxes debt 55,000 43,000 Bank debt 1080,000 Totals llabilitles 52,000 Based on this information: 1080,000 1) Evaluate company's strength by calculating Acid Test, Equity Ratio and the shareholder equity ratio. 14.010 2) How do you evaluate the choice company's situation? to purchase a new building with a new loan to reinforce the 614 01of ofylio 1070 s2 $20661 $20661 ofyl $20061 206614 V070 s20 $20661 21 p107
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