Please explain the correct approach for solving this general accounting question. ABC Corporation's balance sheet shows the following information:AssetAmount ($)Cash8,500Accounts receivable12,300Inventory8,700Property, plant & equipment 75,000Less: Accumulated depreciation (12,000Total Assets102,500Labs and Stackers' EquityLiabilities and Equity Amount (5)Accounts payable5,200Short-term notes payable 3,800Long-term debt34,000Common stock, $25 par 30,000Additional paid-in capital 15,500Retained eamings£4,000Total Liabilities & Equity 102,500The average number of common shares outstanding during the year was 1,200 shares, and netincome for the year was $7,800.What is ABC Corporation's debt-to-equity ratio?A. 72.27%B. 41.8%C. 53.2%D. 127.8%

Step 1: Definition of Debt-to-Equity RatioDebt-to-equity ratio measures a company's financial…

Answered: ABC Corporation's balance sheet shows…

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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Based on the information below of FDNACCT Co., how much should be recorded as total assets in the Statement of Financial Position? Long-term Payable Notes Payable Property, Plant and Equipment Accounts Receivable Accounts Payable Accumulated Depreciation Cash Unearned Income Notes Receivable Prepaid Insurance Accrued Expense Accrued Revenue P500,000 120,000 831,000 50,000 65,000 121,000 76,000 15,345 259,000 56,700 37,890 154,840
Calculate the following for Co. XYZ: a. Current ratio b. Debt ratio Assets: Cash and marketable securities $400,000 Accounts receivable 1,415,000 Inventories 1,847,500 Prepaid expenses 24,000 Total current assets $3,686,500 Fixed assets 2,800,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,712,500 Total assets $5,399,000 Liabilities: Accounts payable $600,000 Notes payable 875,000 Accrued taxes Total current liabilities $1,567,000 Long-term debt 900,000 Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,375,000 Selling and administrative expense 1,000,500 Depreciation expense 135,000 Interest expense Earnings before taxes $765,000 Income taxes Net income Common stock dividends $230,000 Change in retained earnings
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilities $ 840,000 $ 2,800,000 Required: Determine the following balance sheet items: $ $ $ $ 2.25 1.2 1.8 1,800,000 1,000,000 1,000,000 1,000,000 PLEASE SHOW STEP BY STEP SOLUTION ESPECIALLY FOR QUESTION 2 AND 3
The following information pertains to Cachet Company. Assume that allBalance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit.AssetsCash and short-term investments P 40,000Accounts receivable (net) 30,000Inventory 25,000Property, plant and equipment 215,000Total Assets P310, 000Liabilities and Stockholders’ EquityCurrent liabilities P 60,000Long-term liabilities 95,000Stockholders’ equity—common 55,000Total Liabilities and Stockholders’ Equity P310, 000Income StatementSales P 90,000Cost of goods sold 45,000Gross margin 45,000Operating expenses 20,000Net income P 25,000Number of shares of common stock 6,000Market price of common stock P20Dividends per share P1.00What is the price-earnings ratio for this company?A. 6 timesB. 4.2 timesC. 8 times D. 4.8 times Can you please give me a coherent solution for this?
Profile Co has the following assets and liabilities: Assets: Cash $100 , account receivable,$150 ; Inventory,$240 ,land $200, plant net of accumulated amortization $300 : liabilities short term bank loan, $60 : accounts payable long term loan mortage loan ,$160 ,profolio co long term assets total was
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Corporation Wayne EnterprisesCurrent assets:Cash and cash equivalents $ 2,494 $ 541Current investments 125Net receivables 1,395 217Inventory 10,710 8,600Other current assets 773 301Total current assets $15,372 $9,784Current liabilitiesCurrent debt $ 1,321 $ 47Accounts payable 8,871 5,327Other current liabilities 1,270 2,334Total current…
Find BEP.
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 880,000 $ 3,200,000 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilities 2.50 1.50 1.5 Required: Determine the following balance sheet items:
Cullumber company has these comparative balance sheet data:
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The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory Total assets Current ratio $ 860,000 $ 3,200,000 2.40 1.40 Debt to equity ratio 1.5 Acid-test ratio Required: Determine the following balance sheet items: 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilities
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