EnviroFriend Structures, Inc., builds environmentally sensitive structures. The companys 2018 revenues totaled $2,780 million. On December 31,
Question:
EnviroFriend Structures, Inc., builds environmentally sensitive structures. The company’s 2018 revenues totaled $2,780 million. On December 31, 2018, and 2017, the company had, respectively, $656 million and $591 million in current assets. The company’s balance sheets and income statements reported the following amounts:
1. Describe each of EnviroFriend’s long-term liabilities and state how the liability arose.
2. What were the company’s total assets on December 31, 2018? Evaluate the company’s leverage and debt ratios at the end of 2017 and 2018. Use year-end figures in place of averages were needed for calculating the ratios in this exercise. Did the company improve, deteriorate, or remain about the same over the year?
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield