Problem i ces W The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable Numerator: 3. Compute the Year 2 year-end debt ratio. Accounts receivable Cost of goods sold Current assets Current liabilities. Year 1 $ 43,894 23,826 3,758 115,374 45,148 OCT 11 0 0 62,640 0 Year 2 W $ 6,731 18,680 2,753 122,895 54,148 150,502 37,554 31,068 88,056 Debt Ratio, Denominator: Saved Prev Debt Ratio Debt ratio 1 of 1 0 MacBook Air Next > Help C Save

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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Problemi
ces
w
F1
Q
A
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and
Year 2.
December 31
Cash
Accounts receivable
office supplies
office equipment
Trucks
Building
Land
@
Accounts payable
Note payable
2
3. Compute the Year 2 year-end debt ratio.
Numerator:
Accounts receivable
Cost of goods sold
Current assets
Current liabilities
F2
W
S
OCT
11
1
20
#3
F3
E
Year 1
$ 43,894
23,826
3,758
115,374
45,148
D
0
0
62,640
0
W
$
4
Debt Ratio
Denominator:
000
000 F4
R
Year 2
$ 6,731
18,680
2,753
FL
122,895
54,148
150,502
37,554
31,068
88,056
%
5
2
F5
T
=
=
=
O
Prey
Saved
A
6
Debt Ratio
Debt ratio
1 of 1
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7
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Transcribed Image Text:Problemi ces w F1 Q A The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land @ Accounts payable Note payable 2 3. Compute the Year 2 year-end debt ratio. Numerator: Accounts receivable Cost of goods sold Current assets Current liabilities F2 W S OCT 11 1 20 #3 F3 E Year 1 $ 43,894 23,826 3,758 115,374 45,148 D 0 0 62,640 0 W $ 4 Debt Ratio Denominator: 000 000 F4 R Year 2 $ 6,731 18,680 2,753 FL 122,895 54,148 150,502 37,554 31,068 88,056 % 5 2 F5 T = = = O Prey Saved A 6 Debt Ratio Debt ratio 1 of 1 MacBook Air F6 Y 0 & 7 G H ◄◄ F7 Next > AXO U * 00 8 J ► 11 F8 I 69 K Þ F9 O 10 L DS F10 Help P 4) B Save F11 {
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