Q7. Calculate debt and equity ratios using the following information- Accounts payable- $10,000 Accounts Receivable- $15,000 Buildings- $42,000 Cash-$4,000 Current Notes payable- $7,000 Office supplies $3,000 Long term notes payable- $40,000 Prepaid insurance- $2,000 Unearned revenue liability- $1,000 Wages payable-$3,000 Retained earnings- $10,000 Company issued 500 common shares @ $2 and 400 Preference shares @$3 during the year.

Q7. Calculate debt and equity ratios using the following information- Accounts payable- $10,000 Accounts Receivable- $15,000 Buildings- $42,000 Cash-$4,000 Current Notes payable- $7,000 Office supplies $3,000 Long term notes payable- $40,000 Prepaid insurance- $2,000 Unearned revenue liability- $1,000 Wages payable-$3,000 Retained earnings- $10,000 Company issued 500 common shares @ $2 and 400 Preference shares @$3 during the year.

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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Statement of Financial Position Cash 10,000 Accounts payable $15,000 Accounts receivable 70,548 Notes payable 35,548 Inventory 20,000 Current liabilities $50,548 Current assets $100,548 Long-term debt 200,000 Fixed assets 500,000 Equity $350,000 Total assets $600,548 Total liabilities & equity $600,548 Questions: What are the three components of a credit policy? Does the company’s current credit policy satisfy these three components? What are the effective annual costs for the two proposed credit policy alternatives? If the average borrowing rate for the company’s customers is 15%, will these credit policies be attractive to these customers?
Use the following information to answer the questions: Assets Liabilities and Equity Cash 14,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities 22,000 Inventory 24,000 Long-term debt 95,000 Current assets 44,000 Total liabilities 117,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 21,000 Net fixed assets 114,000 Equity 41,000 Total assets 158,000 Total liab. & equity 158,000 Line item Value Sales 80,000 - Costs 65,600 - Depreciation 2,000 = EBIT 12,400 - Interest 800 = Taxable income 11,600 - Taxes 3,828 = Net income 7,772 What is the total debt ratio (including all liabilities)?
(Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here: E a. What percentage of the firm's assets does the firm finance using debt (liabilities)? b. If Campbell were to purchase a new warehouse for $1.1 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? a. What percentage of the firm's assets does the firm finance using debt (liabilities)? The fraction of the firm's assets that the firm finances using debt is %. (Round to one decimal place.)
A6
A company has the following balance sheet. What is its total net operating capital? (Round it to a whole dollar, if necessary) Cash $ 20 Accounts payable $ 60 Short-term investments 30 Accruals 50 Accounts receivable 50 Notes payable 10 Inventory 80 Current liabilities xxx Current assets xxx Long-term debt 70 Net fixed assets 100 Common equity 30 Retained earnings xx Total assets $xxx Total liab. & equity $xx
The amount of Gross Loans is The following are real Iife data extracted from the Housing Bank financial statements. Use them to answer the questions. Additional Information: Accumulated Provislons for Loan Losses (end balance) 250; Number of Outstanding Shares 315,000,000 (315 MIllon) and share price JD9 (Balance Sheet (in Milion (Assets (JD Cash and Balances at Central Banks Balances at Banks and Financial institutions Deposits at Banks and Financial institutions Total Cash and Due trom Depository institutions Trading Investments Available for Sale Investments Held to Maturity Investments, Net Total Securitles 1,478 743 53 2,221 581 745 1,327 Investments in Affilates 2,369 Loans (or Credit Facilities), Net 93 Fixed Assets, Net 6. Doferred income Tax Assets Other Assets Total Asseta (Uabilitles (JD Customers Deposits Banks & Financial Institutions Deposits 71 6,090 4,430 284 Total Deposits Cash Margins 4,714 290
What is Bank A's ROA based on Figure 1 Balance Sheet ($ in Millions): Assets Liability and Equity Cash $850 Deposits $6,475 Securities 1,925 Other borrowing 1,645 Loans 5,400 Equity 1,030 Other 975 Total $9,150 Total $9,150 Figure 2 Income Statement ($ in Millions): Interest income on loans $450 Interest income on securities 95 Interest expense 246 Noninterest income 78 Noninterest expense 112 Provision for loan loss 35 Taxes 115 Net Income $115 Based on Figures 1 and 2, what is Bank A's Equity Multiplier? A. 8.88 B. 4.75 C. 7.23 D. 8.11
Calculate Quick Ratio: AKA the Acid Test
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1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
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