The following financial statements apply to the next six problems, 13s.12-13s.18. Inland Manufacturing Balance Sheet (Dollars in millions) December 31, 2011, December 31, 2010 Cash $400 $300 Account receivables 560 450 | Inventory 790 550 Total current assets $1,750 $1,300 Total fixed assets 1,200 1,210 Total assets $2,950 $2,510 Inland Manufacturing Income Statement December 31, 2011 (continued) Account payable Note payable $350 $250 (Dollars in Millions) 470 330 Labor 850 Other current liabilities 220 130 Overhead 230 Total current liabilities $1,040 $710 Depreciation Gross profit 400 $1,710 Long-term debt Common equity Total liabilities and equity 580 580 $740 $1,330 $1,220 Selling expenses General and administrative expenses 40 $2,950 $2,510 60 $640 Eanings before interest and taxes (EBIT) Interest expenses Inland Manufacturing Income Statement December 31, 2011 (Dollars in Millions) 25 Earnings before income taxes Provision for income taxes (40%) Gross sales $2,450 $615 Cost of goods sold: 246 Materials $230 Net income $369
The following financial statements apply to the next six problems, 13s.12-13s.18. Inland Manufacturing Balance Sheet (Dollars in millions) December 31, 2011, December 31, 2010 Cash $400 $300 Account receivables 560 450 | Inventory 790 550 Total current assets $1,750 $1,300 Total fixed assets 1,200 1,210 Total assets $2,950 $2,510 Inland Manufacturing Income Statement December 31, 2011 (continued) Account payable Note payable $350 $250 (Dollars in Millions) 470 330 Labor 850 Other current liabilities 220 130 Overhead 230 Total current liabilities $1,040 $710 Depreciation Gross profit 400 $1,710 Long-term debt Common equity Total liabilities and equity 580 580 $740 $1,330 $1,220 Selling expenses General and administrative expenses 40 $2,950 $2,510 60 $640 Eanings before interest and taxes (EBIT) Interest expenses Inland Manufacturing Income Statement December 31, 2011 (Dollars in Millions) 25 Earnings before income taxes Provision for income taxes (40%) Gross sales $2,450 $615 Cost of goods sold: 246 Materials $230 Net income $369
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
If Inland uses its $400 cash balance to pay off $400 of its long-term debt, what will be its new
(a) 1.68 (b) 2.03
(c) 1.35 (d) 3.12
![The following financial statements apply to the next six problems, 13s.12-13s.18.
Inland Manufacturing Balance Sheet
(Dollars in millions)
December 31, 2011, December 31, 2010
Cash
$400
$300
Account receivables
560
450
| Inventory
790
550
Total current assets
$1,750
$1,300
Total fixed assets
1,200
1,210
Total assets
$2,950
$2,510
Inland Manufacturing Income Statement December 31, 2011 (continued)
Account payable
Note payable
$350
$250
(Dollars in Millions)
470
330
Labor
850
Other current liabilities
220
130
Overhead
230
Total current liabilities
$1,040
$710
Depreciation
Gross profit
400
$1,710
Long-term debt
Common equity
Total liabilities and equity
580
580
$740
$1,330
$1,220
Selling expenses
General and administrative expenses
40
$2,950
$2,510
60
$640
Eanings before interest and taxes (EBIT)
Interest expenses
Inland Manufacturing Income Statement December 31, 2011
(Dollars in Millions)
25
Earnings before income taxes
Provision for income taxes (40%)
Gross sales
$2,450
$615
Cost of goods sold:
246
Materials
$230
Net income
$369](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b39c246-a8fe-44b9-93f5-0108242c41d4%2F312417c9-3e53-4fc2-9edd-f073f1c34098%2F3k12dld_processed.png&w=3840&q=75)
Transcribed Image Text:The following financial statements apply to the next six problems, 13s.12-13s.18.
Inland Manufacturing Balance Sheet
(Dollars in millions)
December 31, 2011, December 31, 2010
Cash
$400
$300
Account receivables
560
450
| Inventory
790
550
Total current assets
$1,750
$1,300
Total fixed assets
1,200
1,210
Total assets
$2,950
$2,510
Inland Manufacturing Income Statement December 31, 2011 (continued)
Account payable
Note payable
$350
$250
(Dollars in Millions)
470
330
Labor
850
Other current liabilities
220
130
Overhead
230
Total current liabilities
$1,040
$710
Depreciation
Gross profit
400
$1,710
Long-term debt
Common equity
Total liabilities and equity
580
580
$740
$1,330
$1,220
Selling expenses
General and administrative expenses
40
$2,950
$2,510
60
$640
Eanings before interest and taxes (EBIT)
Interest expenses
Inland Manufacturing Income Statement December 31, 2011
(Dollars in Millions)
25
Earnings before income taxes
Provision for income taxes (40%)
Gross sales
$2,450
$615
Cost of goods sold:
246
Materials
$230
Net income
$369
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education