Bundle: Fundamentals of Financial Management, Concise Edition, Loose-leaf Version, 9th + Aplia, 1 term Printed Access Card
9th Edition
ISBN: 9781337089241
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 3, Problem 2DQ
Summary Introduction
To analyze: The long term debt and source of finance for Company W.
Introduction:
Long-term Debt:
The portion of total liabilities of a firm that will not be due in the current accounting period or within 1 year is called long term debt. It is usually, borrowed on fixed cost known as interest charges that is paid on periodical intervals.
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what would be the debt to equity ratio for each year in this scenario?
JUST DEW IT CORPORATION2017 and 2018 Balance Sheets
Assets
Liabilities and Owners' Equity
2017
2018
2017
2018
Current assets
Current liabilities
Cash
$ 10,150
$ 10,350
Accounts payable
$ 74,500
$ 61,250
Accounts receivable
27,100
27,250
Notes payable
48,500
49,250
Inventory
62,900
63,500
Total
$ 123,000
$ 110,500
Total
$ 100,150
$ 101,100
Long-term debt
$ 59,400
$ 64,900
Owners' equity
Common stock and paid-in surplus
$ 80,000
$ 80,000
Fixed assets
Retained earnings
171,750
192,700
Net plant and equipment
$ 334,000
$ 347,000
Total
$ 251,750
$ 272,700
Total assets
$ 434,150
$ 448,100
Total liabilities and owners' equity
$ 434,150
$ 448,100
Based on the balance sheets given for Just Dew It, calculate the following…
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Chapter 3 Solutions
Bundle: Fundamentals of Financial Management, Concise Edition, Loose-leaf Version, 9th + Aplia, 1 term Printed Access Card
Ch. 3 - Prob. 1QCh. 3 - Who are some of the basic users of financial...Ch. 3 - If a typical firm reports 20 million of retained...Ch. 3 - Explain the following statement: Although the...Ch. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - How are managements actions incorporated in EVA...Ch. 3 - Explain the following statement: Our tax rates are...
Ch. 3 - Prob. 11QCh. 3 - How does the deductibility of interest and...Ch. 3 - BALANCE SHEET The assets of Dallas Associates...Ch. 3 - INCOME STATEMENT Byron Books Inc recently reported...Ch. 3 - INCOME STATEMENT Patterson Brothers recently...Ch. 3 - STATEMENT OF STOCKHOLDERS EQUITY In its most...Ch. 3 - MVA Harper Industries has 900 million of common...Ch. 3 - Prob. 6PCh. 3 - EVA Barton Industries has operating income for the...Ch. 3 - PERSONAL TAXES Susan and Stan Britton are a...Ch. 3 - BALANCE SHEET Which of the following actions are...Ch. 3 - STATEMENT OF STOCKHOLDERS EQUITY Electronics World...Ch. 3 - EVA For 2016, Gourmet Kitchen Products reported 22...Ch. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - FREE CASH FLOW Arlington Corporations financial...Ch. 3 - INCOME STATEMENT Edmonds Industries is...Ch. 3 - FINANCIAL STATEMENTS The Davidson Corporation's...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho...Ch. 3 - Prob. 20ICCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
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