On the night of February 1, 2020, an accidental fire destroyed certain records of Brad Corporation. Brad
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Question:
On the night of February 1, 2020, an accidental fire destroyed certain records of Brad Corporation. Brad was able to piece together the following information:
The shareholder's equity section of the balance sheet from the year-ended 2019 was:
Shareholders' Equity: ($000) | ||||
Common Stock | $100 | |||
Additional paid in capital | $800 | |||
Retained earnings | $1,170 | |||
Total shareholders' equity | $2,070 |
Brad issued no additional common stock in 2020 and paid no dividends in 2020.
Using only the 2020 year-end balances to calculate the ratio, the 2020 asset turnover ratio was 1.5.
Sales in 2020 were $12,000 and the net profit margin was 15%.
Using only the 2020 year-end balance sheet amounts in your calculations:
What was Brad's 2020 debt to assets ratio?
What was Brad's return on equity ratio?
Related Book For
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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