Problem 1-33A (Algo) Interrelationships among financial statements LO 1-5, 1-7, 1-8 [The following information applies to the questions displayed below) Pratt Corporation started the Year 2 accounting period with total assets of $38.000 cash, $16,000 of liabilities, and $13,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $15.050 The bookkeeper reported that Pratt paid cash expenses of $30.000 and paid a $2.800 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services Pratt also paid $11.000 cash to reduce the liability owed to a bank, and the business acquired $8.800 of additional cash from the issue of common stock. Assume all transactions are cash transactions Problem 1-33A (Algo) Part e e. Determine the percentage of total assets that were provided by creditors, investors and earnings (Round your answers to 2 decimal places.) Total Assets

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.