Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand $ 15,000 Total Current Assets 130,000 Total Fixed Assets 290,000 Total Assets $420,000 Accounts Payable $ 20,000 Overdraft Loan Payable 0 1-Year Bank Loan Payable 5,000 Current Portion of Long-Term Bank Loans 22,000 Total Current Liabilities 47,000 Long-Term Bank Loans Outstanding 153,000 Total Liabilities 200,000 Shareholder Equity: Year 11 Balance Year 12 Change Common Stock 20,000 0 20,000 Additional Capital 120,000 0 120,000 Retained Earnings 60,000 20,000 80,000 Total Shareholder Equity 200,000 +20,000 220,000 Total Liabilities and Shareholder Equity $420,000 Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is 0.40. 0.45. 0.46. 0.42.
Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand $ 15,000 Total Current Assets 130,000 Total Fixed Assets 290,000 Total Assets $420,000 Accounts Payable $ 20,000 Overdraft Loan Payable 0 1-Year Bank Loan Payable 5,000 Current Portion of Long-Term Bank Loans 22,000 Total Current Liabilities 47,000 Long-Term Bank Loans Outstanding 153,000 Total Liabilities 200,000 Shareholder Equity: Year 11 Balance Year 12 Change Common Stock 20,000 0 20,000 Additional Capital 120,000 0 120,000 Retained Earnings 60,000 20,000 80,000 Total Shareholder Equity 200,000 +20,000 220,000 Total Liabilities and Shareholder Equity $420,000 Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is 0.40. 0.45. 0.46. 0.42.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
Related questions
Question
Given the following Year 12 balance sheet data for a footwear company:
Balance Sheet Data | |||
---|---|---|---|
Cash on Hand | $ 15,000 | ||
Total Current Assets | 130,000 | ||
Total Fixed Assets | 290,000 | ||
Total Assets | $420,000 | ||
Accounts Payable | $ 20,000 | ||
Overdraft Loan Payable | 0 | ||
1-Year Bank Loan Payable | 5,000 | ||
Current Portion of Long-Term Bank Loans | 22,000 | ||
Total Current Liabilities | 47,000 | ||
Long-Term Bank Loans Outstanding | 153,000 | ||
Total Liabilities | 200,000 | ||
Shareholder Equity: | Year 11 Balance |
Year 12 Change |
|
Common Stock | 20,000 | 0 | 20,000 |
Additional Capital | 120,000 | 0 | 120,000 |
60,000 | 20,000 | 80,000 | |
Total Shareholder Equity | 200,000 | +20,000 | 220,000 |
Total Liabilities and Shareholder Equity | $420,000 |
Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is
0.40.
0.45.
0.46.
0.42.
0.48.
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