Assume that XY Company has Owner's equity of Birr 100,000 and the following ratios are computed...

 

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Assume that XY Company has Owner's equity of Birr 100,000 and the following ratios are computed from the financial statement of the company. Current liabilities to total debt ----------0.40 Total debt to owners' equity -➖➖➖➖➖➖➖➖➖➖-0.60 ➤ Fixed assets to owners' equity ---------0.60 ➤ Total asset turnover ratio --2 times a) What is the amount of fixed asset to be reported on the balance sheet of XY Company for the period? b) What is the amount of current liability to be reported on the balance sheet of XY Company for the period? c) What is the amount of long-term debt to be reported on the balance sheet of XY Company for the period? Assume that XY Company has Owner's equity of Birr 100,000 and the following ratios are computed from the financial statement of the company. Current liabilities to total debt ----------0.40 Total debt to owners' equity -➖➖➖➖➖➖➖➖➖➖-0.60 ➤ Fixed assets to owners' equity ---------0.60 ➤ Total asset turnover ratio --2 times a) What is the amount of fixed asset to be reported on the balance sheet of XY Company for the period? b) What is the amount of current liability to be reported on the balance sheet of XY Company for the period? c) What is the amount of long-term debt to be reported on the balance sheet of XY Company for the period?

Answer rating: 100% (QA)

a Fixed assets to owners equity 0 60 fixed assets owners equity fixed assets to owners equity fixe... View the full answer