Alpha Company provided the following balance sheet for Year 2:**Assets** - Cash: $6,150 - Accounts receivable: $17,000 - Inventory: $19,500 - Prepaid expenses: $22,300 - Plant and equipment, net of depreciation: $40,000 **Total assets:** $104,950 **Liabilities and stockholders' equity** - Accounts payable: $6,000 - Salaries payable: $13,000 - Bonds payable (due in ten years): $10,000 - Common stock, no par: $45,000 - Retained earnings: $30,950 **Total liabilities and stockholders' equity:** $104,950 **Question:** What is the company's plant assets to long-term liabilities ratio?

The plant assets to long-term ratio is a kind of solvency ratio. It helps to identify the security…

Answered: Alpha Company provided the following…

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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complete the balance sheet Assets Liabilities & Equity Cash $ 100,000 Current Liabilities Receivables Long Term Debt 0 Inventory Total Debt Plant Common Equity $ 600,000 Total Assets Total Claims Additional Information: Current Ratio is 2.5 ; Average Collection Period is 54 days; Total Debt to Total Assets 40 percent ; Total Asset Turnover is 2 ; Inventory Turnover 5
What is the D/E Ratio=Total Debt/Total Equity? Equity Ratio=Total Shareholders equity/Total assets? Debt Ratio = Total Debt / Total assets Lola's Company Balance Sheet December 31st, 2020 Assets Cash and Cash Equivalents $100,000 Accounts Receivable $150,000 Inventory $200,000 Prepaid Expenses $50,000 Property, Plant and Equipment $500,000 Total Assets $1,000,000 Liabilities Accounts Payable $100,000 Notes Payable $200,000 Accrued Expenses $50,000 Total Liabilities $350,000 Owner's Equity Common Stock $250,000 Retained Earnings $400,000 Total Owner's Equity $650,000 Total Liabilities and Owner's Equity $1,000,000 Statement of Owner's Equity December 31st, 2020 Owner's Equity at Beginning of Year $400,000 Net Income for the Year $130,000 Issuance of Common Stock $50,000 Dividends Paid ($30,000) Owner's Equity at End of Year $550,000 Lola's Company Statement of Cash Flow December 31st, 2020 Cash Flows from Operating Activities Net Income Depreciation Expense $100,000 $50,000 Increase in…
Selected data from the Carmen Company at year-end are as follows: Total assets Average total assets Net income Sales Average common stockholders' equity Net cash provided by operating activities Shares of common stock outstanding Long-term investments $2,000,000 $2,200,000 $250,000 $1,300,000 $1,000,000 $275,000 10,000 $400,000 Required: Compute the (a) asset turnover, (b) return on total assets, (c) return on common stockholders' equity, and (d) earnings per share on common stock. Assume the company had no preferred stock or interest expense. Round dol values to the nearest cent and other final answers to one decimal place. a. Asset turnover ratio b. Return on total assets c. Return on common stockholders' equity d. Earnings per share on common stock 1000 % % per share K
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $272,000 $172,260 Property, plant, and equipment 493,000 440,220 Intangible assets 85,000 25,520 Current liabilities 153,000 76,560 Long-term liabilities 365,500 280,720 Common stock 102,000 102,080 Retained earnings 229,500 178,640 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Current Previous Previous year year year year Amount Percent Amount Percent Current assets $272,000 $172,260 Property, plant, and equipment 493,000 440,220 Intangible assets 85,000 25,520 econ.doox P Type here to search Show all 0 耳は 2 a 59°F 6:07 AM (Dツ 10/30/2021 2 bp 144 prt sc…
* Question Completion Status: Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year: Current assets Total assets Current liabilities Total liabilities Total stockholders' equity Net sales Cost of Goods Sold Wages expense Supplies expense Depreciation expense Interest expense Net income 12/31/X2 $430,000 $2,500,000 $210,000 $1,210,000 $1,290,000 $4,800,000 $3,200,000 $973,000 $60,000 $35,000 $12,000 $520,000 12/31/X1 $220,000 e $1,950,000 $180,000 $1,180,000 $770,000 $3,900,000 $2,690,000 $869,000 $50,000 $32,000 $9,000 $250,000 Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answ
The balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities and stockholders' equity: Current liabilities $285 $120 Long-term debt 255 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,125 $800 Required: b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place. Randolph Company Comparative Balance Sheet For the Years Ended December 31, Year 2 and Year 1 Assets Year 2Amount Year 2Percent Year 1Amount Year 1Percent Current assets $445 fill in the blank 2e1a1e0b0fbcf94_1% $280 fill in the blank 2e1a1e0b0fbcf94_2% Plant assets 680 fill in the blank 2e1a1e0b0fbcf94_3 520 fill in the blank 2e1a1e0b0fbcf94_4 Total assets $1,125 fill in the blank 2e1a1e0b0fbcf94_5% $800 fill in the…
Comparative balance sheets at December 31, 2020 and 2021 are show for the company below. 2020 2021 Cash 68,200 131,450 accounts receivable 81,400 86,900 Inventory 129,800 136,400 Prepaid expenses 5,500 6,600 Land 0 70,950 Plant assets 264,400 306,900 Accumulated depreciation (94,600) (88,000) Franchise 35,200 26,400 Total assets $471,900 $677,600 Accounts payable 45,100 58,300 Notes payable 69,300 63,800 Bonds payable 0 141,900 Common stock 275,000 302,500 Additional paid in capital 50,600 61,600 Retained earnings 31,900 49,500 Total liabilities and equity $471,900 $677,600 Additional Information:1. A fully depreciated plant asset, which originally cost $22,000 and had no salvage value, was sold for $1,100. 2. Bonds payable were issued at par value. One-half of the bonds were exchanged for land; the remaining one-half was issued for cash. 3. Common stock was sold for cash. 4. The only entries in the Retained…
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
The balance sheets for a company, along with additional information, are provided below: Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: $ 107,800 $ 118,100 94,500 84,500 2,500 Cash 80,000 100,000 5,000 Accounts receivable Inventory Prepaid rent Long-term assets: 505,000 695,000 (278,000) $1,221,600 Land 505,000 810,000 (433,000) $1,174,800 Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: $ 104,000 Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: 6,300 9,000 89, 500 12,600 5,500 105,000 210,000 Common stock Retained earnings Total liabilities and stockholders' eguity 725,000 225,500 $1,174,800 725,000 179,000 $1,221,600 Additional Information for 2021: 1. Net income is $74,000. 2. The company purchases $115,000 in equipment. 3. Depreciation expense is $155,000. 4. The company repays $105,000 In notes payable. 5. The company declares and pays…
The following trial balance relates to Selt.plc for the year ended 31 December 2021: Equity shares of £1 each Share Premium Retained earnings at 1 January 2021 Property at cost Depreciation on property at 1 January 2021 Plant and equipment at cost Depreciation on plant and equipment at 1 January 2021 Inventory at 1 January 2021 Trade receivables Cash and cash equivalents Trade payables 5% Loan repayable 2026 Revenue Purchases Distribution costs Administrative expenses Research and development expenditure Loan Interest paid Dividend paid Further notes: £'000 34,800 22,800 Required: A Statement of Profit or Loss for the year ended 31 December 2021. A Statement of Financial Position as at 31 December 2021 4,900 4,000 6,840 155,000 22,050 12,750 19,600 300 4,000 287,040 £'000 56,000 2,000 7,780 3,200 4,500 1,560 12,000 200,000 287,040 2) 1) Inventory was valued at £3,800,000 on 31 December 2021. (This valuation is before note (4) below is considered). Property includes land valued at…
The following information was taken from Celebrate Company's balance sheet: Fixed assets (net) $506,000 Long-term liabilities 230,000 Total liabilities 483,000 Total stockholders' equity 805,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities fill in the blank 1 b. Ratio of liabilities to stockholders' equity
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