Question: Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand 5,000 Total Current Assets 70,000 Total Assets
Given the following Year 12 balance sheet data for a footwear company:
| Balance Sheet Data | |||
| Cash on Hand | 5,000 | ||
| Total Current Assets | 70,000 | ||
| Total Assets | 300,000 | ||
| Overdraft Loan Payable | 3,000 | ||
| 1-Year Bank Loan Payable | 15,000 | ||
| Current Portion of Long-Term Loans | 20,000 | ||
| Total Current Liabilities | 55,000 | ||
| Long-Term Bank Loans Outstanding | 100,000 | ||
| Shareholder Equity: | Year 11 Balance | Year 12 Change | |
| Common Stock | 10,000 | 0 | 10,000 |
| Additional Capital | 110,000 | 0 | 110,000 |
| Retained Earnings | 15,000 | 10,000 | 25,000 |
| Total Shareholder Equity | 135,000 | +10,000 | 145,000 |
| Based on the above figures and the formula for calculating the debt-assets ratio, the company's debt-assets ratio (where debt is defined to include both short-term and long-term debt) is | ||
![]() | | 0.127. |
![]() | | 0.45. |
![]() | | 0.33. |
![]() | | 0.40. |
![]() | | 0.46. |
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