A company's balance sheet at December 31, 2012, 2013, and 2014 and income statement for the years
Question:
A company's balance sheet at December 31, 2012, 2013, and 2014 and income statement for the years ended December 31, 2012, 2013, and 2014 include the data on pages 164-165 .
Requirements
Use the years of data to answer the following:
1. Calculate the current ratio for 2012, 2013 and 2014.
2. Calculate the debt ratio for 2012, 2013, and 2014.
3. Evaluate each ratio and determine if the ratio has improved or deteriorated over the three years. Explain what the changes mean.
Transcribed Image Text:
Balance Sheet As at December 31 (in thousands) Furniture and equipment, net Accounts payable Shareholders' equity Shareholders' equity Total liabilities and shareholders' equity Income Statement For the year ended December 31 (in thousands) 2014 2013 2012 Revenue Service revenue $110.0 $99.0 575.0 Expenses Salary Rent 65.0 20.0 7.5 6.0 6.0 104.5 5.5 1.5 $ 4.0 59.0 18.0 6.0 4.5 3.0 90.5 8.5 2.0 $ 6.5 48.0 17.0 3.0 3.5 2.0 73.5 1.5 Supplies Total expenses Income before taxes Income tax Net income $ 1.0
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Related Book For
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
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