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
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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 | 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 |
| - |
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)?
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