Given the following year 12 balance sheet data for a shoe company: balance sheet data Money in
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Question:
Given the following year 12 balance sheet data for a shoe company:
balance sheet data | |||
---|---|---|---|
Money in hand | $ 15,000 | ||
Total current assets | 130.000 | ||
Total fixed assets | 290.000 | ||
total assets | $420,000 | ||
Accounts payable | $ 20,000 | ||
Overdraft loan payable | 0 | ||
1-year bank loan payable | 5,000 | ||
Current portion of long-term bank loans | 22,000 | ||
Total current liabilities | 47,000 | ||
Outstanding long-term bank loans | 153,000 | ||
Full responsibility | 200,000 | ||
Shareholders' equity: | Year 11 Balance | year 12 change | |
Common actions | 20,000 | 0 | 20,000 |
additional capital | 120,000 | 0 | 120,000 |
Retained earnings | 60.000 | 20,000 | 80.000 |
Total Shareholder Equity | 200,000 | +20,000 | 220,000 |
Total liabilities and shareholders' equity | $420,000 |
Based on the figures above and the definition of the debt-to-asset ratio presented in the Help section on p. 5 of the Footwear Industry Report, calculate the company's debt-to-asset ratio (rounded to 2 decimal places)
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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