a)
Ratio of liabilities to
To Compute: The ratio of liabilities to stockholders' equity of Company PJ and Company YB.
b)
To derive: A conclusion regarding the margin of protection to the creditors from the ratio of liabilities to stockholders' equity of Company PJ and Company YB.
c)
A more risky company among Company PJ and Company YB.
Trending nowThis is a popular solution!
Chapter 1 Solutions
Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th
- Subject:- General Accountarrow_forwardFinancial Accountarrow_forwardSubject:- General Account Data for a firm's first year of operation is given below. The firm uses direct costing: Units produced (no work in process) 6,000 Units sold 5,000 units in ending inventory of finished goods 1,000 Sales price for each unit $75 Variable manufacturing costs for each unit manufactured $30 Variable selling and admin. expenses for each unit sold $16 Fixed manufacturing costs for the year $90,000 Fixed selling and admin. expenses for the year $65,000 The costs of the goods sold for the year is: a) $270,000 b) $225,000 c) $150,000 d) $45,000arrow_forward
- Question: Cost Account Many companies have switched from absorption costing to variable costing for internal reporting: A) so the denominator level is more accurate B) to reduce the undesirable incentive to build up inventories C) to comply with external reporting requirements D) to increase bonuses for managersarrow_forwardSubject = General Accountarrow_forwardRoth Inc. has a deferred tax liability of $68,000 at the beginning of 2013. At the end of 2013, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary difference). If the enacted tax rate is 34% for all periods, and income taxes payable for the period is $230,000, determine the amount of total income tax expense to report for 2013.(Subject:- General Account)arrow_forward
- Calculate the selling price solution this questionarrow_forwardRoth Inc. has a deferred tax liability of $68,000 at the beginning of 2013. At the end of 2013, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary difference). If the enacted tax rate is 34% for all periods, and income taxes payable for the period is $230,000, determine the amount of total income tax expense to report for 2013.arrow_forwardOxford Corporation began operations in 2012 and reported a pretax financial income of $225,000 for the year. Oxford's tax depreciation exceeded its book depreciation by $40,000. Oxford's tax rate for 2012 and years thereafter is 30%. In its December 31, 2012, balance sheet, what amount of deferred tax liability should be reported?arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,