Balance Sheet as of December 31, 2018 2018 $ 125,000 $ 375,000 550,000 $ 1,050,000 2,750,000 (1,200,000) $1,550,000 $2,600,000 Assets Cash Accounts receivable Inventory Total current assets Grossfixed assets Accumulated depreciation Net fixed assets TOTAL ASSETS Debt (Liabilities) and Equity $ 150,000 150,000 $ 300,000 Accounts payable Short-term notes Total current liabilities Long-tem debt Total debt 600,000 $ 900,000 $ 900,000 800,000 $1,700,000 $ 2,600,000 Common stock Retained earnings Total owners' equity TOTAL DEBT AND EQUITY Income Statement for the Year ending December 31, 2018 $1,450,000 (850,000) $ 600,000 (240,000) $ 360,000 (64,000) $ 296,000 (118,000) $ 178.000 Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Profits beforetaxes Тахes Net profits Industry Norms Current ratio 3.25 Retum on assets 15.0% Operating profit margin 20.0% Total asset turnover 0.75 Debt ratio 0.20 Retum on equity 9.0%

Balance Sheet as of December 31, 2018 2018 $ 125,000 $ 375,000 550,000 $ 1,050,000 2,750,000 (1,200,000) $1,550,000 $2,600,000 Assets Cash Accounts receivable Inventory Total current assets Grossfixed assets Accumulated depreciation Net fixed assets TOTAL ASSETS Debt (Liabilities) and Equity $ 150,000 150,000 $ 300,000 Accounts payable Short-term notes Total current liabilities Long-tem debt Total debt 600,000 $ 900,000 $ 900,000 800,000 $1,700,000 $ 2,600,000 Common stock Retained earnings Total owners' equity TOTAL DEBT AND EQUITY Income Statement for the Year ending December 31, 2018 $1,450,000 (850,000) $ 600,000 (240,000) $ 360,000 (64,000) $ 296,000 (118,000) $ 178.000 Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Profits beforetaxes Тахes Net profits Industry Norms Current ratio 3.25 Retum on assets 15.0% Operating profit margin 20.0% Total asset turnover 0.75 Debt ratio 0.20 Retum on equity 9.0%

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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Similar questions

In detail pls
Why might a business invest cash in temporary investments?
Why are most decision makers particularly concerned about the amount of current liabilities reported by a company?
What is one of the possible choices for financing a company’s operations and how do we account for the amount we owe and the payments we must make on the debt?
The monetary value charged to customers for the performance of services sold is called a(n) O asset O capital net income O revenue F
How can capital gains and losses be offset against each other?
Why are these long-term assets important to the success of your employer or your future business?
._______ It is the difference between a firm’s assets and its liabilities
A borrower’s personal investment in the operations of a business is called as. a. Conditions b. Capital c. Character d. Collateral
The financial market offers the investors a means to sell their financial asset thereby a. Increasing the wealth of investor b. Offering liquidity to such assets c. Decreasing the wealth of investor d. Diluting the liquidity of such assets
An advantage that money has over other assets is that it: Answer a. Provides a higher return to the owner b. Is a safer asset to hold during times of inflation c. Increases in value over time d. Has lower transaction costs to use as a means of payment than other assets
Is debt good for a company? Why or Why not?