Question: I just need the work shown please P3-32A Additional Questions - Ratio Analysis (See les Acct 2210 Zeigler: P3-32A Full Accounting Cycle $ - Ratio


P3-32A Additional Questions - Ratio Analysis (See les Acct 2210 Zeigler: P3-32A "Full Accounting Cycle" $ - Ratio Analysis (See text pg 165-168) 1) What is the "Debt to Assets" Ratio to the "Debt to Assets" Ratio for Smith Training Company What are you measuring with this measuring with this ratio? Discuss each question and show your numerator/denominator work below. Total debt This debt to asset ratio is a leverage ratio is Total assets that measures the amount of total assets thort are financed by Creditors instead of investors. 2) What is the "ROA" for Smith Training Company? What does ROA stand for and what are you measuring with this ratio? Discuss each question and show your numerator/denominator work. Roa = Return on assets is an inclicator of now profitable income a company is relative to its tota assets Dissets. 3) What is the "ROE" for Smith Training Company? What does ROE stand for and what are you measuring with this ratio? Discuss each question and show your numerator/denominator work. KDE = keturn on equity is a measure of financial perform me calculated by dividing net income Shareholders equity sers equity 3-4 Problem 3-32A Comprehensive problem: single cycle The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $45,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $24,000 cash. Apr. 10 Purchased $3,200 of supplies on account. July 1 Received $24,000 cash in advance for services to be provided over the next year. 20 Paid $1,500 of the accounts payable from April 10. Aug. 15 Billed a customer $18,000 for services provided during August Sept. 15 Completed a job and received $8,400 cash for services rendered. Oct. 1 Paid employee salaries of $12,000 cash. 15 Received $15,000 cash from accounts receivable. Nov. 16 Billed customers $42,000 for services rendered on account. Dec. 1 Paid a dividend of $15,000 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $3,600 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies: $280 was on hand at the end of the period
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