Calculate the debt/equity ratio at December 31, 2022. The following information are relevant to the current liabilities
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate the debt/equity ratio at December 31, 2022.
Transcribed Image Text:
The following information are relevant to the current liabilities of B Company as of December 31, 2022: a. A reconciliation of the company accounts payable general ledger to its subsidiary ledger appears below: Balance per general ledger Check issued to supplier on December 30, dated January 4 Check issued to supplier December 30, dated December 30 Check issued to supplier on January 3, dated December 30 Invoice price of goods received on January 5 Purchase in-transit as of December 31, FOB shipping point Purchase returns in December, credit memos received in January 5 Debit memos in suppliers account where there is no right of offset Balance per subsidiary ledger Php459,000 23,000 (19,000) (15,000) 20,000 25,000 (4,000) 10,000 Php499,000 The company reported total appliance sales at Php25,000,000. The company sold 1,000 units of its product in the current year. Each product sold is accompanied by a one-year service-type warranty contract. The warranty service can be sold separately at Php2,500 per service contract. During the current year, the company spent Php800,000 in warranty service-related costs and is expected to incur Php400,000 more to complete all service warranty contracts. The following information are relevant to the current liabilities of B Company as of December 31, 2022: a. A reconciliation of the company accounts payable general ledger to its subsidiary ledger appears below: Balance per general ledger Check issued to supplier on December 30, dated January 4 Check issued to supplier December 30, dated December 30 Check issued to supplier on January 3, dated December 30 Invoice price of goods received on January 5 Purchase in-transit as of December 31, FOB shipping point Purchase returns in December, credit memos received in January 5 Debit memos in suppliers account where there is no right of offset Balance per subsidiary ledger Php459,000 23,000 (19,000) (15,000) 20,000 25,000 (4,000) 10,000 Php499,000 The company reported total appliance sales at Php25,000,000. The company sold 1,000 units of its product in the current year. Each product sold is accompanied by a one-year service-type warranty contract. The warranty service can be sold separately at Php2,500 per service contract. During the current year, the company spent Php800,000 in warranty service-related costs and is expected to incur Php400,000 more to complete all service warranty contracts.
Expert Answer:
Answer rating: 100% (QA)
ANS WER Deb t Equ ity ratio Total Li abilities Total Equity Total ... View the full answer
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian Edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
What is the Debt Equity Ratio for this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost of Goods Sold...
-
Calculate the debt to equity ratio of Walmart for the last two years. Discuss what those ratios reveal about the company.
-
At December 31, 2014, Parew Corporation has a long-term debt of $600,000 owing to its bank. The existing debt agreement imposes several covenants related to Parew's liquidity and solvency. At...
-
Selected information from Indigo Books & Music Inc.'s income statements for three recent years follows (dollars in thousands): Instructions (a) Calculate gross profit, and profit from operations, for...
-
The following securities are in Amberwood Companys portfolio of long-term available for- sale securities at December 31, 2012. Cost 1,000 shares of Reginald Corporation common stock ....... $52,000...
-
( a * | b * ) * ( ( \ epsi | a ) | b * ) * ( a | b ) * abb ( a | b ) *
-
Consider the following income statement data from the Mono Company: a. Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. b. Comment briefly on the...
-
Create an E-R diagram for FAME based on the enterprise data model you developed in 1-52. Clearly state any assumptions you made in developing the diagram.
-
The quarterly sales of an item (which has a steady monthly demand) is 32 000 units. The cost is R100 per unit and the unit selling price is R150. The ordering cost amounts to R25 per order and the...
-
Par Corporation acquired all the stock of Sad Corporation on January 1, 2011, for $280,000 cash, when the book values and fair values of Sad's assets and liabilities were as follows (in thousands):...
-
How do you evaluate the impact of termination on absenteeism?
-
7. In a distant galaxy a war is being fought, and a large space battleship (mass 10,000,000kg) is defending itself using powerful mass driver cannons. These mass drivers accelerate dense projectiles...
-
The following exchange rates are quoted simultaneously in Johannesburg, Frankfurt, Singapore and Paris: Johannesburg: USD/ZAR 18.8300 Frankfurt: GBP/USD 1.2550 Singapore: ZAR/SGD 0.0725 Paris:...
-
Suppose that this year's PE ratio for Seahawk, Inc. is 22 and the industry average PE is 30 . Also suppose that the average PE for Seahawk over the previous ten years has been 18. Based on the PE...
-
A typical rooftop solar photovoltaic system on a house has a routing of about 12 kW. Assuming an average duration of daylight hitting the photovoltaic panels of 7 hours per day with per during those...
-
180 day t-bill is trading at a discount of 5% and has a face value of $10,000. What is the rate of return you will earn on the investment if held to maturity?
-
Question What is the purpose of performance management? What are the main activities (steps) of performance management that can be placed for this case? What are some issues/challenges relating to...
-
Test whether the 5-year survival rate for breast cancer is significantly different between African American and Caucasian women who are younger than 50 years of age and have localized disease....
-
What information is accumulated on an employees individual earnings record? Why must this information be accumulated? For what purposes is the information used?
-
Tool Depot sells the latest selection of power tools and uses a perpetual inventory system. The following is information on the purchases and sales of the power drills, M1500. On November 1, Tool...
-
The following account information appeared on Ucore Sales adjusted trial balance as of December 31, 2017. The accounts are listed in alphabetical order. Required 1. Prepare a classified,...
-
Cash larceny involves the fraudulent stealing of an employer's cash. These schemes often target the company's bank deposits. The fraudster steals the money after the deposit has been prepared, but...
-
Describe the four types of data analytics.
-
The corporate social responsibility highlighted in this chapter (see page 585) mentions that Home Depot believes in giving back. One of the ways the company has done this is through its Team Depot...
Study smarter with the SolutionInn App