a. what are the debt to equity ratios at the beginning and the end of the 2018 fiscal business year? Has the ratio improved? If so, by how much?b. the restaurant has last cash at the end of the year than it had at the beginning, is that a bad thing? explain. Casn58,000ST0,000Inventory5,0004,000Total Current Assets$13,000$14,000Total Net Long-Term Assets9,0008,000Total Assets$22,000$22,000LiabilitiesTotal Current Liabilities$1,000soTotal Long-Term Liabilities4,0005,000Total Liabilities$5,000$5,000Owner's Equity17,00017,000TotalLiabilities and Owner's Ecuity.$22 000$22 000 Cash50,000STU,000(20%)Inventory5,0004,00025%Total Current Assets$13,000$14,000(7%)Total Net Long-Term Assets9,0008,00013%Total Assets$22,000$22,0000%LiabilitiesShort-Term Liabilities$1,000soN.A.Long-Term Liabilities4,0005,000(20%)Total Liabilities$5,000$5,0000%Owner's Equity17,00017,0000%Total Liabilities and Owner's Fauity$22.000$22.000

The debt to equity ratio indicates the amount of debt held by an entity in comparison to the equity.…

a. what are the debt to equity ratios at the beginning and the end of the 2018 fiscal business year? Has the ratio improved? If so, by how much? b. the restaurant has last cash at the end of the year than it had at the beginning, is that a bad thing? explain.

a. what are the debt to equity ratios at the beginning and the end of the 2018 fiscal business year? Has the ratio improved? If so, by how much? b. the restaurant has last cash at the end of the year than it had at the beginning, is that a bad thing? explain.

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

a. what are the debt to equity ratios at the beginning and the end of the 2018 fiscal business year? Has the ratio improved? If so, by how much?

b. the restaurant has last cash at the end of the year than it had at the beginning, is that a bad thing? explain.

Casn
58,000
ST0,000
Inventory
5,000
4,000
Total Current Assets
$13,000
$14,000
Total Net Long-Term Assets
9,000
8,000
Total Assets
$22,000
$22,000
Liabilities
Total Current Liabilities
$1,000
so
Total Long-Term Liabilities
4,000
5,000
Total Liabilities
$5,000
$5,000
Owner's Equity
17,000
17,000
TotalLiabilities and Owner's Ecuity.
$22 000
$22 000

Cash
50,000
STU,000
(20%)
Inventory
5,000
4,000
25%
Total Current Assets
$13,000
$14,000
(7%)
Total Net Long-Term Assets
9,000
8,000
13%
Total Assets
$22,000
$22,000
0%
Liabilities
Short-Term Liabilities
$1,000
so
N.A.
Long-Term Liabilities
4,000
5,000
(20%)
Total Liabilities
$5,000
$5,000
0%
Owner's Equity
17,000
17,000
0%
Total Liabilities and Owner's Fauity
$22.000
$22.000

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