ELLA COMPANY Balance Sheet December 31 Assets Liabilitles $ 86,000 Current liabilities .... 76,000 Long-term liabilities...... Cash ... $124,000 Accounts receivable.... Merchandise inventory.. 122,000 Equity Prepaid insurance... Long-term investments.. Plant assets, net... Total assets.... 90,000 12,000 Common stock. 300,000 98,000 Retained earnings 316,000 436,000 $830,000 Total liailities and equity .. $830,000

ELLA COMPANY Balance Sheet December 31 Assets Liabilitles $ 86,000 Current liabilities .... 76,000 Long-term liabilities...... Cash ... $124,000 Accounts receivable.... Merchandise inventory.. 122,000 Equity Prepaid insurance... Long-term investments.. Plant assets, net... Total assets.... 90,000 12,000 Common stock. 300,000 98,000 Retained earnings 316,000 436,000 $830,000 Total liailities and equity .. $830,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Need answer please

A: If you have any help please let me know in comment box and then I will help you.

Q: What is the debt ratio for a firm with an equity multiplier of 3.5? Multiple Choice 44.09…

A: Debt ratio is that ratio which shows ratio between total liabilities and total assets in the…

Q: Please give correct solution

A: Step 1: Step 2: Step 3: Step 4:

Q: Please help me for this question

A: To determine the firm's return on assets (ROA), we need to use the formula: ROA = Net Profit /Total…

Q: Need help with this question

A: Step 1: Step 2: Step 3: Step 4:

Q: A company has: Return on Asset 0.08 Cost of the debt 0.04. What is the Cost of Equity if the…

A: Solution:Return on asset refers to the weighted average cost required by the fund providers of the…

Q: Assignment 1: Financial Statement Analysis and Interpretation of the Results • Select two different…

A: The objective of this question is to conduct a financial analysis of two different corporations from…

Q: Need correct answer the question

A: The problem involves the determination of the ROA or Return on Assets. ROA refers to a financial…

Q: answer

A: A) Equity-total assets ratio = 100% - Debt-Total assets ratioEquity-total assets ratio = 100% -…

Q: What is the cost of equity (%)? What is the post-tax cost of debt (%)? What is the WACC (%)?…

A: With cost of equity (re), post tax cost of debt (rd), debt (D) and equity (E), WACC is calculated as…

Q: Please answer the question

A: Step 1: Step 2: Step 3: Step 4:

Q: A firm has a debt-equity ratio of 1.10. What is the total Debt ratio? A) 0.52 B) 1.10

A: The debt to total ratio can be calculated as ratio of total debt and total assets.

Q: Based on Long-Term Debt paying ability, are any of them doing well? which company is doing better?

A: Debt ratio tells the relationship between total debt and total assets of a company. In other words,…

Q: Ramos Land Management has a target debt - to - value ratio of .45. The pretax cost of debt is 7.4…

A: It is a financial concept that refers to the expected rate of return that a company's shareholders…

Q: Solve this question

A: A: Profit margin = net income/assets * (1/sales/total assets) Net income/assets is ROA = 7% Sales…

Q: f the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt…

A: Market value of equit + Debt = EBIT / Cost of capital

Q: 6. Calculate and explain the Weighted Average Cost of Capital (WACC) based on the details below. a.…

A: WACC (Weighted Average Cost of Capital) is a financial metric used to assess a company's cost of…

Q: Debt Ratio (current) Equity Ratio (current) Cost of Debt Market Risk Premium. Equity Beta Debt Beta…

A: Cost of capital:The term "cost of capital" refers to the expense a company incurs in order to…

Q: what is the debt to equity ratio if the WACC is0.083 the cost of debt is 0.055 and the cost of…

A: Weighted average cost of capital is a metric used to evaluate the average cost that the company…

Q: stion 26 Consider the following data: D₁-$1.55: Po-$49.50. g-3.70% (constant); and F-2.00% What is…

A: The cost of equity can be defined as the return required by the equity shareholders. Equity…

Q: consider the following data RF= 4.15% RPM = 5.35% and B= .85 based on the CAPM approach what is the…

A: CAPME(ri) = Rf + Bi * (E(Rm) - Rf)E(ri) = Expected returnRf = Risk free rateBi = BetaE(Rm) =…

Q: 1 2 Debt Ratio (current) 3 4 Equity Ratio (current) Cost of Debt Market Risk Premium 5 6 Equity Beta…

A: WACC refers to the overall weighted cost of using different sources of capital like debt, bonds,…

Q: What is the debt ratio for a firm with an equity multiplier of 3.5? ____ 44.09 percent ____ 58.51…

A: Debt ratio of a firm measures the weightage of debt in the total assets held by the firm.

Question

What is Ella Company’s debt ratio?
a. 25.78% d. 137.78%
b. 100.00% e. 34.74%
c. 74.22%

ELLA COMPANY
Balance Sheet
December 31
Assets
Liabilitles
$ 86,000 Current liabilities ....
76,000 Long-term liabilities......
Cash ...
$124,000
Accounts receivable....
Merchandise inventory.. 122,000 Equity
Prepaid insurance...
Long-term investments..
Plant assets, net...
Total assets....
90,000
12,000 Common stock.
300,000
98,000 Retained earnings
316,000
436,000
$830,000 Total liailities and equity .. $830,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Complete a and b thank you
A firm has a debt-to-equity ratio of 2. What is its equity multiplier? 01 O 2.5 03 O 1.5 O 2
q. 20 Lee Sun’s has sales of $3,350, total assets of $3,050, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity? a. 5.00 percent b. 5.49 percent c. 10.74 percent d. 9.31 percent e. 4.09 percent
RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…
Question: Samuelson's has a debt-equity ratio of 45 percent, sales of $11,000, net income of $2,300, and total debt of $11,700. What is the return on equity? a. 4.50 percent. b. 20.91 percent. c. 8.85 percent. d. 19.66 percent. e. 6.10 percent.
Problem solve this problem