Problem 1: Below is the financial information for Justin Bieber's Merch pany for the year 2020: Cash and Cash Equivalents 513,374 312,745 112,038 1,039,782 59,744 Accounts Receivable Merchandise Inventory Machinery and Equipment Furnitures and Fixtures Total Assets 2,037,683 Suppose that the total current assets of the company for the year 2019 is P1, the total fixed asset for the same year is P687,369 plus there is a prepaid expe O of P35,000 for insurance. Compute for the financial leverage ratio assuming e of the total liabilities for the company is P856,971.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 1: Below is the financial information for Justin Bieber's Merchandising
company for the year 2020:
Cash and Cash Equivalents
Accounts Receivable
Merchandise Inventory
Machinery and Equipment
Furnitures and Fixtures
Total Assets
513,374
312,745
112,038
1,039,782
59,744
2,037,683
Suppose that the total current assets of the company for the year 2019 is P1,317,873
and the total fixed asset for the same year is P687,369 plus there is a prepaid expenses for
2020 of P35,000 for insurance. Compute for the financial leverage ratio assuming that the
value of the total liabilities for the company is P856,971.
Transcribed Image Text:Problem 1: Below is the financial information for Justin Bieber's Merchandising company for the year 2020: Cash and Cash Equivalents Accounts Receivable Merchandise Inventory Machinery and Equipment Furnitures and Fixtures Total Assets 513,374 312,745 112,038 1,039,782 59,744 2,037,683 Suppose that the total current assets of the company for the year 2019 is P1,317,873 and the total fixed asset for the same year is P687,369 plus there is a prepaid expenses for 2020 of P35,000 for insurance. Compute for the financial leverage ratio assuming that the value of the total liabilities for the company is P856,971.
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