Use your knowledge of balance sheets and ratio analysis to complete the following abbreviated balance sheet. The current ratio= 1.25, and the debt/equity ratio = 1.5. Assets Current assets Noncurrent assets Total assets $80,000 Liabilities Current liabilities Noncurrent liabilities Total liabilities Owner's equity Total liabilities and owner equity $100,000
Use your knowledge of balance sheets and ratio analysis to complete the following abbreviated balance sheet. The current ratio= 1.25, and the debt/equity ratio = 1.5. Assets Current assets Noncurrent assets Total assets $80,000 Liabilities Current liabilities Noncurrent liabilities Total liabilities Owner's equity Total liabilities and owner equity $100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Question 2
a.
Use your knowledge of balance sheets and ratio analysis to complete the following
abbreviated balance sheet. The current ratio= 1.25, and the debt/equity ratio = 1.5.
Current assets
Noncurrent assets
Total assets.
b.
Assets
Total assets
Assets
Current assets
Noncurrent assets
$80,000
Assume you are an agricultural loan officer for a bank, and a customer requests a
loan based on the following balance sheet. Conduct a ratio analysis and give your reasons for
granting or denying an additional loan. What is the weakest part of this customer's financial
condition?
$40,000
$200,000
Liabilities
$240,000
Current liabilities
Noncurrent liabilities.
Total liabilities
Owner's equity
Total liabilities and owner equity
Liabilities
$100,000
Current liabilities.
Noncurrent liabilities
$45,000
$50,000
$95,000
Total liabilities
Owner's equity
$145,000
Total liabilities and owner equity $240,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23af2035-58bf-4995-9ea1-96b6177bb395%2F9c4fd9d3-a58e-4548-a22c-451104ea7472%2Fgzcn4v5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2
a.
Use your knowledge of balance sheets and ratio analysis to complete the following
abbreviated balance sheet. The current ratio= 1.25, and the debt/equity ratio = 1.5.
Current assets
Noncurrent assets
Total assets.
b.
Assets
Total assets
Assets
Current assets
Noncurrent assets
$80,000
Assume you are an agricultural loan officer for a bank, and a customer requests a
loan based on the following balance sheet. Conduct a ratio analysis and give your reasons for
granting or denying an additional loan. What is the weakest part of this customer's financial
condition?
$40,000
$200,000
Liabilities
$240,000
Current liabilities
Noncurrent liabilities.
Total liabilities
Owner's equity
Total liabilities and owner equity
Liabilities
$100,000
Current liabilities.
Noncurrent liabilities
$45,000
$50,000
$95,000
Total liabilities
Owner's equity
$145,000
Total liabilities and owner equity $240,000
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