Question: Given the following Year 9 selected balance sheet data: Assets Cash on Hand $136,000 Total Current Assets 255,000 Total Fixed Asset Investments 205,000 Total Assets

Given the following Year 9 selected balance sheet data:

Assets
Cash on Hand $136,000
Total Current Assets 255,000
Total Fixed Asset Investments 205,000
Total Assets $460,000
Liabilities and Shareholder Equity
Accounts Payable $ 66,000
Overdraft Loan Payable 0
1-Year Bank Loan Payable 10,000
Current Portion of Long-Term Loans 27,000
Total Current Liabilities 103,000
Long-Term Bank Loans 56,000
Total Liabilities 159,000
Shareholder Equity: Year 8 Balance Year 9 Change
Common Stock (at a par value of $0.50 per share 10,050 0 10,050
Additional Capital 81,500 0 81,500
Retained Earnings 162,450 47,000 209,450
Total Shareholder Equity 254,000 +47,000 301,000
Total Liabilities and Shareholder Equity $460,000

Based on the above figures and the definition of the debt:equity percentages (or debt%:equity%) presented in the Help section for p. 5 of the Camera and Drone Journal, the company's debt:equity percentages (rounded to the nearest percentage --like 31% or 69%) and its current ratio are

29:71 (or 29%:71%) and 3.26.

35:65 (or 35%:65%) and 2.48.

35:65 (or 35%:65%) and 1.83

31:69 (or 31%:69%) and 2.74

53:47 (or 53%:47%) and 2.48.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!