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Flynn Plastics Company reports the following data in its September 30, 2015, financial statements:   Gross sales $225 000 Current assets $50 000 Long-term assets $130 000 Current liabilities $33 000 Long-term liabilities $52 000 Net income $11 250   (a) Compute the owners’ equity. (b) Compute the current ratio. (c) Compute the debt-to-equity ratio.

Flynn Plastics Company reports the following data in its September 30, 2015, financial statements:   Gross sales $225 000 Current assets $50 000 Long-term assets $130 000 Current liabilities $33 000 Long-term liabilities $52 000 Net income $11 250   (a) Compute the owners’ equity. (b) Compute the current ratio. (c) Compute the debt-to-equity ratio.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Flynn Plastics Company reports the following data in its September 30, 2015, financial statements:

 

  • Gross sales $225 000
  • Current assets $50 000
  • Long-term assets $130 000
  • Current liabilities $33 000
  • Long-term liabilities $52 000
  • Net income $11 250

 

(a) Compute the owners’ equity.

(b) Compute the current ratio.

(c) Compute the debt-to-equity ratio.

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