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%
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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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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