Question: Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand 2,000 Total Current Assets 78,000 Total Assets
Given the following Year 12 balance sheet data for a footwear company:
| Balance Sheet Data | |||
| Cash on Hand | 2,000 | ||
| Total Current Assets | 78,000 | ||
| Total Assets | 330,000 | ||
| Overdraft Loan Payable | 4,000 | ||
| 1-Year Bank Loan Payable | 8,000 | ||
| Current Portion of Long-Term Loans | 18,000 | ||
| Total Current Liabilities | 48,000 | ||
| Long-Term Bank Loans Outstanding | 120,000 | ||
| Shareholder Equity: | Year 11 Balance | Year 12 Change | |
| Common Stock | 10,000 | 0 | 10,000 |
| Additional Capital | 100,000 | 0 | 100,000 |
| Retained Earnings | 30,000 | 22,000 | 52,000 |
| Total Shareholder Equity | 140,000 | +22,000 | 162,000 |
| Based on the above figures and the formula for calculating the debt-assets ratio, the company's debt-assest ratio (where debt is defined to include both short-tem and long-term debt) will be which one? | ||
![]() | | 0.442. |
![]() | | 0.364 |
![]() | | 0.418 |
![]() | | 0.455 |
![]() | | 0.091 |
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