1.
Concept Introduction:
To prepare: The balance sheet of company T for years 1 and year 2 ended December 31.
2.
Concept Introduction:
Net income: Net income refers to the income generated by subtracting all expenses from the income of the company. It is shown in the Income statement of the company. Net income is very important to know the actual earnings of the company.
The net income of company T in year 2 ended December 31.
3.
Concept Introduction:
Debt ratio analysis: Debt ratio refers to the relation of all the debts of the company with the assets of the company. It shows the ability of the company to pay its debts in a good way i.e. it shows the solvency of the company.
The debt ratio of company T in year 2.

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Chapter 2 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
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