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Additional information: 2018 current ratio: 1.4:1  debt to total assets: 61.1% Question: find working capital for 2018 Additional information: 2017 current ratio 1.5:1 working capital: 214,500 Question find debt to total assets for 2017

Additional information: 2018 current ratio: 1.4:1  debt to total assets: 61.1% Question: find working capital for 2018 Additional information: 2017 current ratio 1.5:1 working capital: 214,500 Question find debt to total assets for 2017

FINANCIAL ACCOUNTING
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

Additional information: 2018

current ratio: 1.4:1 

debt to total assets: 61.1%

Question: find working capital for 2018

Additional information: 2017

current ratio 1.5:1

working capital: 214,500

Question find debt to total assets for 2017

Current liabilities Accounts payable Salaries payable Income tax payable Total current liabilities Mortgage payabl Total Liabilities Shareholders' Equity Common shares Retained earnings Total liabilities and shareholders' equity $314,385 50,865 56,578 275,000 41,136 $812,000 $306,000 38,000 73,795 $511,795 275,000 65,705 $852,500
Transcribed Image Text:Current liabilities Accounts payable Salaries payable Income tax payable Total current liabilities Mortgage payabl Total Liabilities Shareholders' Equity Common shares Retained earnings Total liabilities and shareholders' equity $314,385 50,865 56,578 275,000 41,136 $812,000 $306,000 38,000 73,795 $511,795 275,000 65,705 $852,500
Current assets Cash Held for trading investments Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Total assets Liabilities Current liabilities Accounts payable $70,000 96,000 138,000 232,000 79,000 615,000 197,000 $812,000 $314,385 tA $ $75,000 133,500 207,000 46,000 200,000 767692 $306,000
Transcribed Image Text:Current assets Cash Held for trading investments Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Total assets Liabilities Current liabilities Accounts payable $70,000 96,000 138,000 232,000 79,000 615,000 197,000 $812,000 $314,385 tA $ $75,000 133,500 207,000 46,000 200,000 767692 $306,000
Expert Solution
Step 1

Lets understand the basics.

Current ratio shows company's ability to pay its short term obligation using its current assets.

Current ratio = Current asset/Current liability 

Debt to total asset ratio show how much asset is generated using the debt/

Debt to total assets  = (Debt/Total assets) * 100

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