financial statement of a company for 3 years shows that 2022 and 2023 were complete year but 2024 showed as at 15th of december. which financial statement can best representthe current financial position of the company especially whne the company is planning to borrow loan from either bank or investor
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financial statement of a company for 3 years shows that 2022 and 2023 were complete year but 2024 showed as at 15th of december. which financial statement can best representthe current financial position of the company especially whne the company is planning to borrow loan from either bank or investor
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- Considering that the credit policy of Steward (Pty) Ltd is 90 days, which one of the following statements is true when analysing the debtor’s collection period? A. The debtor’s collection period improved from 2020 to 2021, and the company is still collecting debtors within their credit policy terms of 90 days. B. The debtor’s collection period improved from 2020 to 2021, which is also good for the cash flow of the company. C. The debtor’s collection period worsened from 2020 to 2021, and the company is not collecting debtors within their credit policy terms of 90 days. D. The debtor’s collection period worsened from 2020 to 2021, but debtor’s are collected within their credit policy terms of 90 days. E. The debtor’s collection period remained constant from 2020 to 2021.The business is expected to make principal payments totalling $300,000 towards the loan during the fiscal year to June 30 ,2023 Question 1 Would this information be included in the balance sheet for year end june 2022 if they had until June 2023 to make the paymentsDebt Management Ratios Glow Corporation provides annual and quarterly financial data to the public. For the years of 2018 and 2019. Glows financial data included the following account balances: Required: Determine whether the debt to equity ratio is increasing or decreasing and whether Glow should be concerned.
- Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callablePlease help mePrepare the statement of retained earnings TPR had one major creditor at the beginning of 2020. One of the major banks loaned TPR $500,000 for ongoing operating costs. The outstanding portion of the loan was $400,000 at the beginning of the vear. The bank requires TPR to maintain a current ratio of 1.8:1 or the loan may become immediately repayable. It also requires TPR to have a debt to total asset ratio of no greater than 55%. Information required for adjusting journal entries: 1. There is no interest accrual required for the mortgage loan on the building because payment was made on December 31. The loan for the balloon machine carries an interest rate of 5% and has been outstanding for 15 days. 2. Depreciation of $800 on the cash register machines and $15,000 on the other equipment has not yet been recorded. 3. A dividend of $2,000 was declared but has not been recorded. It will be paid in March 2021. 4. The monthly electricity bill of $2,000 was received in early January 2021.…
- The following worksheet with information extracted from a financial statement of XYZ Company: 2020 Assets Liabilities Equity Reported ($) 400 000 200 000 200 000 You believe the firm has omitted a provision pertaining to a lawsuit. You assess this provision is valued at $50 000 and that it will be paid in the next seven months. Using the worksheet approach and assuming a corporate tox rate of 30 per cent, what would be the adjusted debt to assets ratio? Explain the impact/implications of change in the debt to asset ratio on borrowing capacity of the company.What does the company report for the following accounts for the most current fiscal year: Enter your answer in millions. Total Assets: 70,581 Total Liabilities: 67,282 Long-Term debt: 35,822 Other long-term liabilities: 8,294 Operating Income: 18,278 Interest expense: 1,347 2. The company projects the following for the next fiscal year: • Total assets will increase by 5%.• Total liabilities will increase by 6%.• Long-term debt and interest expense will increase by 7%.• Operating income will increase by $750 million. a. Total assets: 74,100 b Total liabilities: 71,319 c. Long-term debt: 38,330 d. operating income: 19,028 e. Interest expense: Provide the next year’s forecasted balances for the above accounts. Round your answer to the nearest million. 1. Compute the forecasted debt to equity ratio for the next fiscal year. Round your answer to two decimal places. 2. Compute the forecasted long-term debt to equity ratio for the next fiscal year. Round your answer to two decimal…Which of the following items we appear as current liabilities in a company’s statement of financial position? a. Loan due for repayment within one year, trade payables, drawings b. Loan due for repayment within one year, trade payables, accruals c. Loan due for repayment within one year, trade payables and trade receivables d. Loan due for repayment within one year, trade payables and capital
- On 1/1/2020, the Key Bank granted a loan to XYZ Company of $5,000,000 with 10% interest payable at end of each year (12/31...). The loan due after 4 years and XYZ Company signed a note payable for the loan amount. XYZ was able to pay the interest for 2020 and 2021. At end of year 3 (2022), XYZ Company was I financial difficulty and did not pay due interest. In January 2023 (beginning of year 4, the Key bank assessed the loan situation and agreed with XYZ to restructure the loan as follows: a. Forgive the accrued interest of year 3 b. Extend the maturity of the note 2 more years c. Reduce interest rate to $300,000 a year d. Reduce the principal of the loan to $3,000,000. Required: Make the necessary restructuring entries to implement the agreement in the books of both: a. The bank: b. XYZ CompanyIf you are told that LSJ Company accounts payable at December 31, 2023 represents 15% of the company's total liabilities on their balance sheet…this would represent an example of what type of analysis: a. Vertical Analysis b. Horizontal Analysis c. Ratio AnalysisHow do I do this?