Based on the balance sheet that given, calculate and explain the A. Liability ratio B. Asset ratio C. Owners Equity ratio

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Based on the balance sheet that given, calculate and explain the

A. Liability ratio

B. Asset ratio

C. Owners Equity ratio

Income statement is asked in question
but informtion given is related to balance Sheet not related to income statement
so iam preparing balance sheet
Balance Sheet
Amount in $ Liabilites
Assets
Non - Current Assets
Building
Equipment
Total Fixed assets
Amount in $
Non -Current Liabilites
Long Term Loan
Total Non -Current Liabilites
100000
100000
100000
100000
200000
Current Liabilites
Notes Payables
Total Liabilites
Equity
Owners Equity
Retained earnings
Current Assets
Account Recivables
Cash in Bank
20000
10000
120000
20000
10000
100000
Total Assets
230000
Total Liabilites and Equity
230000
Transcribed Image Text:Income statement is asked in question but informtion given is related to balance Sheet not related to income statement so iam preparing balance sheet Balance Sheet Amount in $ Liabilites Assets Non - Current Assets Building Equipment Total Fixed assets Amount in $ Non -Current Liabilites Long Term Loan Total Non -Current Liabilites 100000 100000 100000 100000 200000 Current Liabilites Notes Payables Total Liabilites Equity Owners Equity Retained earnings Current Assets Account Recivables Cash in Bank 20000 10000 120000 20000 10000 100000 Total Assets 230000 Total Liabilites and Equity 230000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education