Our company holds $200,000 in accounts payable and $100,000 in accounts receivable. Additionally, the firm has $200,000 in inventories and $600,000 in land and equipment, a long-term bank loan of $100,000 and has issued a long-term bond for $300,000. Finally, the company has net income 150,000$ and 30,000 shares outstanding that currently sell for 35$ each.

1. Carefully create the Balance Sheet of the firm.

2. Estimate the current and the quick ratio.

3. What is the net working capital of the firm?

4. Estimate the total debt ratio and the debt-to-equity ratio.

5. Estimate the price-earnings ratio and the market-to-book ratio.

Answer rating: 100% (QA)

Balance Sheet Assets Accounts Receivable 100000 Inventories 200000 Land and Equipment 600000 Total A... View the full answer