Exercise 8 Hatfield Corporation reports the following amounts in its 2017 financial statements At December 31, 2017 For the year 2017 Total assets P 1,000,000 580,000 ? Total liabilities Total stockholders equity Interest expense P 20,000 Income tax expense 100,000 Net income 150,000 Instructions a. Compute the December 31, 2017, balance in stockholder's equity b. Compute the debt to assets ratio at December 31, 2017. c. Compute times interest earned for 2017.
Exercise 8 Hatfield Corporation reports the following amounts in its 2017 financial statements At December 31, 2017 For the year 2017 Total assets P 1,000,000 580,000 ? Total liabilities Total stockholders equity Interest expense P 20,000 Income tax expense 100,000 Net income 150,000 Instructions a. Compute the December 31, 2017, balance in stockholder's equity b. Compute the debt to assets ratio at December 31, 2017. c. Compute times interest earned for 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Exercise 8
Hatfield Corporation reports the following amounts in its 2017 financial statements
At December 31, 2017
For the year 2017
Total assets
P 1,000,000
Total liabilities
580,000
Total stockholders equity
Interest expense
P 20,000
Income tax expense
100,000
Net income
150,000
Instructions
a. Compute the December 31, 2017, balance in stockholder's equity
b. Compute the debt to assets ratio at December 31, 2017.
c. Compute times interest earned for 2017.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04269bc4-9beb-4a7f-93b4-f273dc86df89%2F6abe5474-8d6b-4c59-8cf0-d878cb9e88df%2Fo20hsv4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8
Hatfield Corporation reports the following amounts in its 2017 financial statements
At December 31, 2017
For the year 2017
Total assets
P 1,000,000
Total liabilities
580,000
Total stockholders equity
Interest expense
P 20,000
Income tax expense
100,000
Net income
150,000
Instructions
a. Compute the December 31, 2017, balance in stockholder's equity
b. Compute the debt to assets ratio at December 31, 2017.
c. Compute times interest earned for 2017.
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