Ratio of liabilities to stockholders' equity : Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations. Ratio of liabilities to stockholders' equity } = Total Liabilities Total Owner's Equity Total owner's equity at the end of the years 2 and 1 for Company LC.

Question

Flow of Production Units Units to be accounted for: Beginning WIP inventory MERCIER MANUFACTURING Fabricating Department Production Cost Report-FIFO Phycol Units Total Costs Prior Department Materials Labor Costs Manufacturing Overhead Units started this period Total units to be accounted for 15,000 75,000 90,000 Units accounted for. Units completed and transfered out: From beginning inventory 15,000 Started and completed currently 45,000 45,000 45,000 45,000 46,000 Units in ending WIP Inventory 30,000 30,000 30,000 18,000 15,000 Total units accounted for 90,000 75,000 75.000 63,000 60,000 Costs to be accounted for. Costs in beginning WIP inventory $ 129,570 $ 75,750 $ 36,000 $ 9,300 $ 8,520 Current period costs Total costs to be accounted for $ 129,570 $ 75,750 214,200 $250,200 $ 64,800 33,480 74,100 $ 42,000 Cost per equivalent unit Prior department costs Materials Labor Manufacturing overhead Costs accounted for. S 4.80 $ 2.80 $ 0.96 S (0.48) Costs assigned to units transformed out:…

Answer 1

Question

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Flow of Production Units Units to be accounted for: Beginning WIP inventory MERCIER MANUFACTURING Fabricating Department Production Cost Report-FIFO Phycol Units Total Costs Prior Department Materials Labor Costs Manufacturing Overhead Units started this period Total units to be accounted for 15,000 75,000 90,000 Units accounted for. Units completed and transfered out: From beginning inventory 15,000 Started and completed currently 45,000 45,000 45,000 45,000 46,000 Units in ending WIP Inventory 30,000 30,000 30,000 18,000 15,000 Total units accounted for 90,000 75,000 75.000 63,000 60,000 Costs to be accounted for. Costs in beginning WIP inventory $ 129,570 $ 75,750 $ 36,000 $ 9,300 $ 8,520 Current period costs Total costs to be accounted for $ 129,570 $ 75,750 214,200 $250,200 $ 64,800 33,480 74,100 $ 42,000 Cost per equivalent unit Prior department costs Materials Labor Manufacturing overhead Costs accounted for. S 4.80 $ 2.80 $ 0.96 S (0.48) Costs assigned to units transformed out:…

Raw materials purchased and ending inventory

General accounting

Answer 2

Question

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 5

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Answer 6

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

Answer 7

Chapter 1, Problem 1.27EX

a)

To determine

Ratio of liabilities to stockholders' equity: Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the owner's equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.

Ratio of liabilities tostockholders' equity}=Total LiabilitiesTotal Owner's Equity

Total owner's equity at the end of the years 2 and 1 for Company LC.

Answer 8

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

Answer 9

b)

To determine

The ratio of liabilities to stockholders' equity of Company LC.

Answer 10

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

Answer 11

c)

To determine

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

Answer 12

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Answer 13

d)

To determine

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 17

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 18

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 19

Trending nowThis is a popular solution!

Answer 20

Trending nowThis is a popular solution!

Answer 21

Trending nowThis is a popular solution!

Answer 22

Trending now

Answer 23

This is a popular solution!

Answer 24

See solution

Check out sample textbook solution

Answer 25

Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQ Ch. 1 - Prob. 3DQ Ch. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQ Ch. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (a)...

Solution Summary: The author explains the ratio of liabilities to stockholders' equity of Company LC.

The ratio of liabilities to stockholders' equity of Company LC.

To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company LC.

To Compare: The ratio of liabilities to stockholders' equity of Company LC and Company THD.

Chapter 1 Solutions