Suppose that for 2011 Rod Company’s current assets totaled $35,600; total assets totaled $70,000; current liabilities totaled $16,000; and total liabilities totaled $25,600. Calculate the debt-to-equity ratio for Rod Company for 2011.
Answer to relevant QuestionsFor each item in the following list, tell whether it is a definitely determinable liability, an estimated liability, or neither:1. Amount owed to vendor for purchase of inventory2. Potential proceeds from pending lawsuit3. ...Grace’s Gems purchased some property on December 31, 2011, for $100,000, paying $20,000 in cash and obtaining a mortgage loan for the other $80,000. The interest rate is 8% per year, with $2,925 payments made at the end of ...On June 30, 2009, Sam’s Office Supplies issued $50,000 face value of 8% bonds at 106. They were five-year bonds with interest paid semiannually, on December 31 and June 30.1. What are the interest payments for the first ...A company has gross payroll of $30,000; federal income tax withheld of $6,000; and FICA (social security) taxes and Medicare taxes withheld of $2,295.1. How much will the balance sheet show for salaries payable (to ...On January 1, 2011, Allied Robotics issued $500,000, 4%, five-year bonds at par. Interest is payable on January 1. Use the accounting equation to record the following:1. The bond issue2. The accrual of interest on December ...
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