Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000 Income tax expense 280,000 Net income 420,000 Income tax rate 40% Total assets: January 1 $1,800,000 December 31 2,400,000 Shareholders' equity (all common): January 1 1,500,000 December 31 1,600,000 Current assets, December 31 700,000 Quick assets, December 31 400,000 Current liabilities, December 31 300,000 Net accounts receivable: January 1 200,000 December 31 180,000 Inventory: January 1 210,000 December 31 250,000 Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was A16.7% B26.2% C42.8% D33.3%
Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000 Income tax expense 280,000 Net income 420,000 Income tax rate 40% Total assets: January 1 $1,800,000 December 31 2,400,000 Shareholders' equity (all common): January 1 1,500,000 December 31 1,600,000 Current assets, December 31 700,000 Quick assets, December 31 400,000 Current liabilities, December 31 300,000 Net accounts receivable: January 1 200,000 December 31 180,000 Inventory: January 1 210,000 December 31 250,000 Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was A16.7% B26.2% C42.8% D33.3%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Given the following information for Blue Bell Company for last year:
Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was
| Net sales (all on account) | $5,200,000 | |
| Cost of goods sold | 2,080,000 | |
| Interest expense | 240,000 | |
| Income tax expense | 280,000 | |
| Net income | 420,000 | |
| Income tax rate | 40% | |
| Total assets: | ||
| January 1 | $1,800,000 | |
| December 31 | 2,400,000 | |
| Shareholders' equity (all common): | ||
| January 1 | 1,500,000 | |
| December 31 | 1,600,000 | |
| Current assets, December 31 | 700,000 | |
| Quick assets, December 31 | 400,000 | |
| Current liabilities, December 31 | 300,000 | |
| Net |
||
| January 1 | 200,000 | |
| December 31 | 180,000 | |
| Inventory: | ||
| January 1 | 210,000 | |
| December 31 | 250,000 |
Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was
A16.7%
B26.2%
C42.8%
D33.3%
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