b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any empty spaces; input a 0 wherever it is required.) Balance Sheet Current assets Liabilities # Cash 11250 Accounts payable 3375 Accounts receivable 9 Accrued wages # 2375 21250 27500 Inventory # Accrued taxes # 9250 Current assets Capital Assets Current liabilities $ 15000 60000 77000 Notes payable B Long-term debt : $ Common stock : 27000 Retained earnings : 75800 Total assets Total liabilities and equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 1 Year 2 Current ratio Total debt/ assets $ The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Income Statement Sales Expenses $200,000 149,300 $ 50,700 Earnings before interest and taxes Interest Earnings before taxes Taxes 2,700 $ 48,000 16,000 Earnings after taxes $ 32,000 $ 16,000 Dividends Balance Sheet Assets Cash Liabilities and Shareholders' Equity Accounts payable $9,000 $2,700 Accounts receivable 17,000 Accrued wages 1,900 Inventory 22,000 Accrued taxes 7,400 Current assets Capital assets $48,000 Current Liabilities 77,000 Notes payable $12,000 7,700 18,500 Long-term debt Common stock 27,000 Retained earnings 59,800 Total assets $125,000 Total liabilities and equity $125,000 Longbranch is expecting a 25 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of capital assets; instead, it will be done through more efficient asset utilization in the existing stores. Of liabilities, only current liabilities vary directly with sales. a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as a positive value.) The firm has $in (Click to select) b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term maoithin ne let the standa
b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any empty spaces; input a 0 wherever it is required.) Balance Sheet Current assets Liabilities # Cash 11250 Accounts payable 3375 Accounts receivable 9 Accrued wages # 2375 21250 27500 Inventory # Accrued taxes # 9250 Current assets Capital Assets Current liabilities $ 15000 60000 77000 Notes payable B Long-term debt : $ Common stock : 27000 Retained earnings : 75800 Total assets Total liabilities and equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 1 Year 2 Current ratio Total debt/ assets $ The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Income Statement Sales Expenses $200,000 149,300 $ 50,700 Earnings before interest and taxes Interest Earnings before taxes Taxes 2,700 $ 48,000 16,000 Earnings after taxes $ 32,000 $ 16,000 Dividends Balance Sheet Assets Cash Liabilities and Shareholders' Equity Accounts payable $9,000 $2,700 Accounts receivable 17,000 Accrued wages 1,900 Inventory 22,000 Accrued taxes 7,400 Current assets Capital assets $48,000 Current Liabilities 77,000 Notes payable $12,000 7,700 18,500 Long-term debt Common stock 27,000 Retained earnings 59,800 Total assets $125,000 Total liabilities and equity $125,000 Longbranch is expecting a 25 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of capital assets; instead, it will be done through more efficient asset utilization in the existing stores. Of liabilities, only current liabilities vary directly with sales. a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as a positive value.) The firm has $in (Click to select) b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term maoithin ne let the standa
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack
![b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term
debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any
empty spaces; input a 0 wherever it is required.)
Balance Sheet
Current assets
Liabilities
#
Cash
11250
Accounts payable
3375
Accounts receivable
9
Accrued wages
#
2375
21250
27500
Inventory
#
Accrued taxes
#
9250
Current assets
Capital Assets
Current liabilities
$ 15000
60000
77000
Notes payable
B
Long-term debt
:
$
Common stock
:
27000
Retained earnings
:
75800
Total assets
Total liabilities and equity
c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.)
Year 1
Year 2
Current ratio
Total debt/ assets
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36b4eda2-ba0e-42d2-9c19-93466d9d03e5%2F34a3f78b-764b-4069-962d-aee6608d0c0e%2Fz7s1xrk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term
debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any
empty spaces; input a 0 wherever it is required.)
Balance Sheet
Current assets
Liabilities
#
Cash
11250
Accounts payable
3375
Accounts receivable
9
Accrued wages
#
2375
21250
27500
Inventory
#
Accrued taxes
#
9250
Current assets
Capital Assets
Current liabilities
$ 15000
60000
77000
Notes payable
B
Long-term debt
:
$
Common stock
:
27000
Retained earnings
:
75800
Total assets
Total liabilities and equity
c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.)
Year 1
Year 2
Current ratio
Total debt/ assets
$
![The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical
average.
Income Statement
Sales
Expenses
$200,000
149,300
$ 50,700
Earnings before interest and taxes
Interest
Earnings before taxes
Taxes
2,700
$ 48,000
16,000
Earnings after taxes
$ 32,000
$ 16,000
Dividends
Balance Sheet
Assets
Cash
Liabilities and Shareholders' Equity
Accounts payable
$9,000
$2,700
Accounts receivable
17,000
Accrued wages
1,900
Inventory
22,000
Accrued taxes
7,400
Current assets
Capital assets
$48,000 Current Liabilities
77,000
Notes payable
$12,000
7,700
18,500
Long-term debt
Common stock
27,000
Retained earnings
59,800
Total assets
$125,000 Total liabilities and equity
$125,000
Longbranch is expecting a 25 percent increase in sales next year, and management is concerned about the company's need for
external funds. The increase in sales is expected to be carried out without any expansion of capital assets; instead, it will be done
through more efficient asset utilization in the existing stores. Of liabilities, only current liabilities vary directly with sales.
a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as
a positive value.)
The firm has
$in (Click to select)
b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term
maoithin ne let the standa](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36b4eda2-ba0e-42d2-9c19-93466d9d03e5%2F34a3f78b-764b-4069-962d-aee6608d0c0e%2Fqndbwki_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical
average.
Income Statement
Sales
Expenses
$200,000
149,300
$ 50,700
Earnings before interest and taxes
Interest
Earnings before taxes
Taxes
2,700
$ 48,000
16,000
Earnings after taxes
$ 32,000
$ 16,000
Dividends
Balance Sheet
Assets
Cash
Liabilities and Shareholders' Equity
Accounts payable
$9,000
$2,700
Accounts receivable
17,000
Accrued wages
1,900
Inventory
22,000
Accrued taxes
7,400
Current assets
Capital assets
$48,000 Current Liabilities
77,000
Notes payable
$12,000
7,700
18,500
Long-term debt
Common stock
27,000
Retained earnings
59,800
Total assets
$125,000 Total liabilities and equity
$125,000
Longbranch is expecting a 25 percent increase in sales next year, and management is concerned about the company's need for
external funds. The increase in sales is expected to be carried out without any expansion of capital assets; instead, it will be done
through more efficient asset utilization in the existing stores. Of liabilities, only current liabilities vary directly with sales.
a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as
a positive value.)
The firm has
$in (Click to select)
b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term
maoithin ne let the standa
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