please anser and explainIncluding the new proposed term loan, what is Nuts n' Seeds Incorporated's 20Y0 total liabilities to equity ratio if you: 1) treated the shareholder loan as equity rather than as a liability, and 2) tested the operating line as fully drawn? (see attached balance sheet) A. 1.10B. 1.25C. 1.15D. 1.20 P1312345678910111213141516171819202122232425262728293031323334353637383940414243444546474849AASSETSCURRENTXCashSales tax receivableInventoryAccounts receivableEQUIPMENT (Aora 3)Total AssetsBLIABILITIESCURRENTAccounts payable and accrued liabilitieBank line of creditCurrent portion of long-term debtSalaries payableDUE TO SHAREHOLDERSLONG-TERM DEBTTotal EquityfxSHAREHOLDERS' EQUITYShare capital Wote 4)Retained earningsCurrent Assets:Current Liabilities:Current Ratio:Total Liabilities:Total Equity:Total Liabilities to Equity:Cover Pageс20Y0$275,87915.127790,535387,5171,469,058803,658$2,272,716$325,514500,00033,33315,430874,278914,412166,6671,955,357Total Liabilities and Shareholder: $2,272,716100317,259317,359DE20X9Nuts n' Seeds Incorporated$72.51715,959796.513362.8851,247,874692,554$1,940,428$324,554441,58913,955780,098914,4121,694,510100245,818245.918$1,940,428FREVENUESCOST OF SALESGROSS MARGINEXPENSESAdvertising and promotionBank chargesBusiness taxes, licenses and membershipsCourier and postageDepreciationInsuranceGInterestOffice and administrationRepairs and maintenanceRent and occupancySalaries and wagesSoftware and computersTelephoneWarehouseNET INCOME BEFORE INCOME TAXIINCOME TAXESNET INCOMETotal Funded DebtFunded Debt to EBITDAHEBITDA:Credit Line Interest:Existing Annual Term Loan Blended Payments:New Annual Term Loan Blended Payments:Debt Service Coverage Ratio:20Y0$2,571,7051,697,325874,38023,54111,64813,29710,271115,7273,94168,4956,13212,86181,372365,1826,1371,50764,968785,07989,30117,860$71,441IJ20X9$2,296,1651,554,917741,24817,1859,8869,1476,23894,7223,51629,6385,2869.21481,178315,9504,28895856,255643,46197,78718,761$79,026KLCredit Line:Spread:Prime:Total Rate:Existing Term Loan:Amortization (months):Rate:Rate Monthly:Monthly Payment:Total Annual Payments:New Term Loan:Amortization (months):Rate:Rate Monthly:Monthly Payment:Total Annual Payments:M500,0003.00%500,000845.50%N0PQRSXEL

Answer:- Debt to equity ratio meaning:- The debt-equity ratio serves as a gauge for how equally…

Answered: please anser and explain Including the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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please anser and explain

Including the new proposed term loan, what is Nuts n' Seeds Incorporated's 20Y0 total liabilities to equity ratio if you: 1) treated the shareholder loan as equity rather than as a liability, and 2) tested the operating line as fully drawn? (see attached balance sheet)

A. 1.10

B. 1.25

C. 1.15

D. 1.20

P13
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A
ASSETS
CURRENT
X
Cash
Sales tax receivable
Inventory
Accounts receivable
EQUIPMENT (Aora 3)
Total Assets
B
LIABILITIES
CURRENT
Accounts payable and accrued liabilitie
Bank line of credit
Current portion of long-term debt
Salaries payable
DUE TO SHAREHOLDERS
LONG-TERM DEBT
Total Equity
fx
SHAREHOLDERS' EQUITY
Share capital Wote 4)
Retained earnings
Current Assets:
Current Liabilities:
Current Ratio:
Total Liabilities:
Total Equity:
Total Liabilities to Equity:
Cover Page
с
20Y0
$275,879
15.127
790,535
387,517
1,469,058
803,658
$2,272,716
$325,514
500,000
33,333
15,430
874,278
914,412
166,667
1,955,357
Total Liabilities and Shareholder: $2,272,716
100
317,259
317,359
D
E
20X9
Nuts n' Seeds Incorporated
$72.517
15,959
796.513
362.885
1,247,874
692,554
$1,940,428
$324,554
441,589
13,955
780,098
914,412
1,694,510
100
245,818
245.918
$1,940,428
F
REVENUES
COST OF SALES
GROSS MARGIN
EXPENSES
Advertising and promotion
Bank charges
Business taxes, licenses and memberships
Courier and postage
Depreciation
Insurance
G
Interest
Office and administration
Repairs and maintenance
Rent and occupancy
Salaries and wages
Software and computers
Telephone
Warehouse
NET INCOME BEFORE INCOME TAXI
INCOME TAXES
NET INCOME
Total Funded Debt
Funded Debt to EBITDA
H
EBITDA:
Credit Line Interest:
Existing Annual Term Loan Blended Payments:
New Annual Term Loan Blended Payments:
Debt Service Coverage Ratio:
20Y0
$2,571,705
1,697,325
874,380
23,541
11,648
13,297
10,271
115,727
3,941
68,495
6,132
12,861
81,372
365,182
6,137
1,507
64,968
785,079
89,301
17,860
$71,441
I
J
20X9
$2,296,165
1,554,917
741,248
17,185
9,886
9,147
6,238
94,722
3,516
29,638
5,286
9.214
81,178
315,950
4,288
958
56,255
643,461
97,787
18,761
$79,026
K
L
Credit Line:
Spread:
Prime:
Total Rate:
Existing Term Loan:
Amortization (months):
Rate:
Rate Monthly:
Monthly Payment:
Total Annual Payments:
New Term Loan:
Amortization (months):
Rate:
Rate Monthly:
Monthly Payment:
Total Annual Payments:
M
500,000
3.00%
500,000
84
5.50%
N
0
P
Q
R
S
X
EL

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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