Question

The adjusted trial balance of Griffith Corporation at March 31, 2014, follows.


Requirements
1. Prepare Griffith Corporation’s 2014 single step income statement, statement of retained earnings, and balance sheet. List expenses (except for income tax) in decreasing order on the income statement, and show total liabilities on the balance sheet. Draw arrows linking the three financial statements.
2. Griffith’s lenders require that the company maintain a debt ratio no higher than 0.50. Compute Griffith’s debt ratio at March 31, 2014, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Griffith could have avoided this difficultsituation.


$1.99
Sales5
Views139
Comments0
  • CreatedJuly 25, 2014
  • Files Included
Post your question
5000