Answered: a. Determine the company's ratio of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following information was taken from Slater Company's balance sheet:

Fixed assets (net)	$2,258,704
Long-term liabilities	576,200
Total liabilities	819,420
Total stockholders' equity	1,951,000

Round your answers to two decimal places.

a. Determine the company's ratio of fixed assets to long-term liabilities.
fill in the blank 1

b. Determine the company's ratio of liabilities to stockholders' equity.
fill in the blank 2

Richards Corporation had net income of $307,767 and paid dividends to common stockholders of $52,700. It had 59,300 shares of common stock outstanding during the entire year. Richards Corporation's common stock is selling for $53 per share. The price-earnings ratio (rounded to two decimal places) is

a.10.21 times

b.11.25 times

c.11.76 times

d.9.18 times

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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