Explanation Given Information: The assets and liabilities of Rayco Inc. for December 31, 2015 are, The assets are $105095 in cash, $6503 in accounts receivable, $190014 in merchandise inventory, $32507 in equipment. The liabilities are $6007 in accounts payable, $4761 in wages payable, $281017 in mortgage note payable. The owner’s capital is $42334. Formula used: Step 1: Find and record the total assets using the steps. 1: List the current assets and draw a single line underneath the last entry. 2: Add the entries and record the total current assets and drawing a single line underneath the total. 3: Repeat step (1) for plant and equipment assets. Repeat step (2) for total plant and equipment asses. 4: Add the category totals and draw a double line underneath the grand total. Total assets = Total current assets + Total plant and equipment Step 2: Find and record the total liabilities using the steps. 1: Repeat step 1(1) for current liabilities and step 1(1) for total current liabilities. 2: Repeat step 1(1) for long term liabilities and step 1(1) for total long term liabilities. 3: Add the category totals and draw a single line underneath the total. Total liabilities = Total current liabilities + Total long term liabilities Step 3: Find and record the total owner’s equity. 1: List the equity entries and draw a single line underneath the last entry. 2: Add the entries and draw a single line underneath the last entry. Step 4: Find and record the total liabilities and owner’s equality: Ass the total liabilities to the total owner’s equity and draw a double line underneath the grand total. Total liabilities and owner's equality = Total liabilities + Owner's equity Step 5: Confirm that the double line grand totals from step 1 and step 4 are the same. Total Assets = Total liabilities + Owner's equity Step 6: The debt ration calculated using the formula, Debt ratio = Total liabilities Total assets Calculation: Consider the assets and liabilities of Rayco Inc. for December 31, 2015 are, The assets are $105095 in cash, $6503 in accounts receivable, $190014 in merchandise inventory, $32507 in equipment. The liabilities are $6007 in accounts payable, $4761 in wages payable, and $281017 in mortgage note payable

11th Edition

ISBN: 9780134496436

Author: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

Publisher: PEARSON

See similar textbooks

Concept explainers

Unitary Method

The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.

Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 …

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experime…

Videos

Question

Chapter 21.3, Problem 1-5SC

To determine

To calculate: The debt ratio at the end of 2015 fort he balance sheet of Rayco Inc. for December 31, 2015.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 21.3, Problem 1-4SC

Chapter 21.3, Problem 1-6SC

Students have asked these similar questions

in a coffee shop, 160 customers came in. Of these, 60 bought coffe and cake and the rest ordered just coffee. determine the probability that the next person will buy coffee and cake

Two dice are rolled and their sum calculated. Draw a table to show all of the possibilities. Determine the theoretical probability of rolling a sum of 7. And determine the theoretical probability of rolling a sum greater than 9

a. Find the value of A.b. Find pX(x) and py(y).c. Find pX|y(x|y) and py|X(y|x)d. Are x and y independent? Why or why not?

Chapter 21 Solutions

Business Math (11th Edition)

Ch. 21.1 - Prob. 1-1SC Ch. 21.1 - Prob. 1-2SC Ch. 21.1 - Prob. 1-3SC Ch. 21.1 - Prob. 1-4SC Ch. 21.1 - Prob. 2-1SC Ch. 21.1 - Prob. 2-2SC Ch. 21.1 - Prob. 2-3SC Ch. 21.1 - Prob. 2-4SC Ch. 21.1 - Prob. 3-1SC Ch. 21.1 - Prob. 3-2SC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

The debt ratio at the end of 2015 for t he balance sheet of Rayco Inc. for December 31, 2015.

Solution Summary: The author explains how to calculate the debt ratio for Rayco Inc. for December 31, 2015.

Concept explainers

Videos

To calculate: The debt ratio at the end of 2015 fort he balance sheet of Rayco Inc. for December 31, 2015.

Want to see the full answer?

Chapter 21 Solutions