Prepaid rent Long-term assets: Investment in bonds Land Equipment 13,200 11,200 5,040 97,000 97,000 0 292,000 202,000 232,000 292,000 262,000 202,000 Less: Accumulated depreciation (79,000) (57,000) (34,000) Total assets $1,004,200 $863,200 $720,040 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $264,600 $58,000 $93,640 Interest payable 6,600 4,400 2,200 Income tax payable Long-term liabilities: Notes payable 11,200 11,000 13,200 320,000 277,000 217,000 Stockholders' equity: Common stock 292,000 292,000 292,000 Retained earnings 109,800 220,800 102,000 Total liabilities and stockholders' equity $1,004,200 $863,200 $720,040 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times 4.9 1.4 % %

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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Prepaid rent
Long-term assets:
Investment in bonds
Land
Equipment
13,200
11,200
5,040
97,000
97,000
0
292,000
202,000
232,000
292,000
262,000
202,000
Less: Accumulated depreciation
(79,000)
(57,000)
(34,000)
Total assets
$1,004,200
$863,200
$720,040
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$264,600
$58,000
$93,640
Interest payable
6,600
4,400
2,200
Income tax payable
Long-term liabilities:
Notes payable
11,200
11,000
13,200
320,000
277,000
217,000
Stockholders' equity:
Common stock
292,000
292,000
292,000
Retained earnings
109,800
220,800
102,000
Total liabilities and stockholders' equity
$1,004,200
$863,200
$720,040
Required:
1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal
place.)
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
2024
2025
times
times
times
times
4.9
1.4
%
%
Transcribed Image Text:Prepaid rent Long-term assets: Investment in bonds Land Equipment 13,200 11,200 5,040 97,000 97,000 0 292,000 202,000 232,000 292,000 262,000 202,000 Less: Accumulated depreciation (79,000) (57,000) (34,000) Total assets $1,004,200 $863,200 $720,040 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $264,600 $58,000 $93,640 Interest payable 6,600 4,400 2,200 Income tax payable Long-term liabilities: Notes payable 11,200 11,000 13,200 320,000 277,000 217,000 Stockholders' equity: Common stock 292,000 292,000 292,000 Retained earnings 109,800 220,800 102,000 Total liabilities and stockholders' equity $1,004,200 $863,200 $720,040 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio 2024 2025 times times times times 4.9 1.4 % %
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