Question: Given the following Financial Statement data: Income Statement Data Quarter 1 (in 000s) Sales Revenues $50,000 Operating Profit 14,400 Net Income $9,555 Balance Sheet Data
Given the following Financial Statement data:
| Income Statement Data | Quarter 1 (in 000s) |
| Sales Revenues | $50,000 |
| Operating Profit | 14,400 |
| Net Income | $9,555 |
| Balance Sheet Data | |
| Total Current Assets | $70,000 |
| Total Assets | 149,000 |
| Total Current Liabilities | 26,000 |
| Debt Outstanding (draw against credit line) | 45,000 |
| Total Stockholders' Equity | 100,000 |
| Other Financial Data | |
| Depreciation | $4,000 |
| Dividend payments | $2,250 |
| Based on the above figures, the company's capital structure (defined as the sum of total debt outstanding and total stockholder's equity) consists of what percentages of debt and equity? The percentages of total capital invested that are debt-financed and equity-financed are among the factors used to determine a company's credit rating, as explained in the Help section for the Comparative Financial Performances presented on p. 7 of the GLO-BUS Statistical Review.) | ||
| | 15% debt and 85% equity or 15:85 |
| | 45% debt and 55% equity or 45:55 |
| | 20% debt and 80% equity or 20:80 |
| | 35% debt and 65% equity or 35:65 |
| | 31% debt and 69% equity or 31:69 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
