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QUESTION :1 Milford Inc. has a debt-to-equity ratio of 0.80. It has total shareholders' equity of $2.5 million and current liabilities of $750,000. How much long-term debt is outstanding? A. $2,375,000 B. $2,100,000 C. $3,125,000 D. $1,250,000 QUESTION :2 The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be?

QUESTION :1 Milford Inc. has a debt-to-equity ratio of 0.80. It has total shareholders' equity of $2.5 million and current liabilities of $750,000. How much long-term debt is outstanding? A. $2,375,000 B. $2,100,000 C. $3,125,000 D. $1,250,000 QUESTION :2 The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be?

FINANCIAL ACCOUNTING
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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QUESTION :1 Milford Inc. has a debt-to-equity ratio of 0.80. It has total shareholders' equity of $2.5 million and current liabilities of $750,000. How much long-term debt is outstanding? A. $2,375,000 B. $2,100,000 C. $3,125,000 D. $1,250,000 QUESTION :2 The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be?
Transcribed Image Text:QUESTION :1 Milford Inc. has a debt-to-equity ratio of 0.80. It has total shareholders' equity of $2.5 million and current liabilities of $750,000. How much long-term debt is outstanding? A. $2,375,000 B. $2,100,000 C. $3,125,000 D. $1,250,000 QUESTION :2 The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be?
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