LIBERTY CORPORATION Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash and Cash Equivalents $ 2,450 $ 2,094 Accounts Receivable 1,813 1,611 Merchandise Inventory 1,324 1,060 1,709 2,120 Prepaid Expenses 7,296 6,885 Total Current Assets 18,500 15,737 Other Assets $ 25,796 $ 22,622 Total Assets Liabilities $ 7,230 $ 8,467 Current Liabilities 4,798 3,792 Long-term Liabilities Total Liabilities 12,028 12,259 Stockholders' Equity Common Stock, no par 6,568 4,363 Retained Earnings 7,200 6,000 Total Stockholders' Equity 13,768 10,363 Total Liabilities and Stockholders' Equity $ 25,796 $ 22,622 LIBERTY CORPORATION Income Statement Year Ended December 31, 2019 $ 20,941 Net Sales Revenue Cost of Goods Sold 7,055 13,886 Gross Profit 7,065 Operating Expenses 6,821 Operating Income 210 Interest Expense Income Before Income Taxes 6,611 2,563 Income Tax Expense $ 4,048 Net Income
LIBERTY CORPORATION Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash and Cash Equivalents $ 2,450 $ 2,094 Accounts Receivable 1,813 1,611 Merchandise Inventory 1,324 1,060 1,709 2,120 Prepaid Expenses 7,296 6,885 Total Current Assets 18,500 15,737 Other Assets $ 25,796 $ 22,622 Total Assets Liabilities $ 7,230 $ 8,467 Current Liabilities 4,798 3,792 Long-term Liabilities Total Liabilities 12,028 12,259 Stockholders' Equity Common Stock, no par 6,568 4,363 Retained Earnings 7,200 6,000 Total Stockholders' Equity 13,768 10,363 Total Liabilities and Stockholders' Equity $ 25,796 $ 22,622 LIBERTY CORPORATION Income Statement Year Ended December 31, 2019 $ 20,941 Net Sales Revenue Cost of Goods Sold 7,055 13,886 Gross Profit 7,065 Operating Expenses 6,821 Operating Income 210 Interest Expense Income Before Income Taxes 6,611 2,563 Income Tax Expense $ 4,048 Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Liberty Corporation reported the following financial statements:
Which measure expresses Liberty’s times-interest-earned ratio? (amounts rounded)
a. 54.7%
b. 19 times
c, 34.5%
d. 32 times
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education