Using this Balance Sheet, calculate the following. Be sure to set up and label the parts...
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Using this Balance Sheet, calculate the following. Be sure to set up and label the parts of the ratios. You must show your work to get credit. 1) Current Ratio: 2) Working Capital: 3) Debt-to-Asset Ratio: 4) Debt-to-Equity Ratio: Answer the following questions. 5) Analyze the financial situation (liquidity, solvency) of this individual. 6) If the operator used $10,000 from cash on hand to buy some additional breeding animals, would owner equity change on the day of the transaction? Why or why not? We assume there are no other changes on her balance sheet. 7) For the situation described in question 6, would the current ratio change? Why or why not? Current Assets: Cash/checking acct. Marketable securities (stock) inventories: Milo on Hand Hay on hand Calves Feeder Cattle Assets accounts receivable prepaid expenses investment in growing crops Other current assets Total Current Assets Noncurrent Assets: Machines and equipment vehicles breeding livestock (cows and bulls) buildings and improvements and Other noncurrent assets Total Noncurrent Assets Total Assets Balance Sheet Rhonda Rancher As of September 23, 2022 $10,500 31,500 22,500 6,500 53,550 132,000 3,200 3,000 7,000 0 $269,750 510,500 89,500 143,200 98,000 1,500,000 4500 $2,345,700 $2,615,450 Current Liabilities: Accounts Payable Note payable at bank Note payable on feeder cattle Current portion of term debt Liabilities Mortgage Beef cattle loan Accrued Interest (total) Income taxes payable Other accrued expenses Total Current Liabilities Noncurrent Liabilities: Loans (less current portion): Machinery Breeding Livestock Mortgage Other Noncurrent Liabilities Total Noncurrent Liabilities Total Liabilities Owner Equity: Contributed capital Retained earnings Valuation adjustment" Total equity Total liabilities and owner equity 6,100 99,000 39600 10,500 29,000 7,500 29,200 0 $220,900 0 92,000 565,000 0 $657,000 $877,900 810,000 545,000 382,550 $1,737,550 $2,615,450 Using this Balance Sheet, calculate the following. Be sure to set up and label the parts of the ratios. You must show your work to get credit. 1) Current Ratio: 2) Working Capital: 3) Debt-to-Asset Ratio: 4) Debt-to-Equity Ratio: Answer the following questions. 5) Analyze the financial situation (liquidity, solvency) of this individual. 6) If the operator used $10,000 from cash on hand to buy some additional breeding animals, would owner equity change on the day of the transaction? Why or why not? We assume there are no other changes on her balance sheet. 7) For the situation described in question 6, would the current ratio change? Why or why not? Current Assets: Cash/checking acct. Marketable securities (stock) inventories: Milo on Hand Hay on hand Calves Feeder Cattle Assets accounts receivable prepaid expenses investment in growing crops Other current assets Total Current Assets Noncurrent Assets: Machines and equipment vehicles breeding livestock (cows and bulls) buildings and improvements and Other noncurrent assets Total Noncurrent Assets Total Assets Balance Sheet Rhonda Rancher As of September 23, 2022 $10,500 31,500 22,500 6,500 53,550 132,000 3,200 3,000 7,000 0 $269,750 510,500 89,500 143,200 98,000 1,500,000 4500 $2,345,700 $2,615,450 Current Liabilities: Accounts Payable Note payable at bank Note payable on feeder cattle Current portion of term debt Liabilities Mortgage Beef cattle loan Accrued Interest (total) Income taxes payable Other accrued expenses Total Current Liabilities Noncurrent Liabilities: Loans (less current portion): Machinery Breeding Livestock Mortgage Other Noncurrent Liabilities Total Noncurrent Liabilities Total Liabilities Owner Equity: Contributed capital Retained earnings Valuation adjustment" Total equity Total liabilities and owner equity 6,100 99,000 39600 10,500 29,000 7,500 29,200 0 $220,900 0 92,000 565,000 0 $657,000 $877,900 810,000 545,000 382,550 $1,737,550 $2,615,450
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SOLUTION Current Ratio Current Assets Current Liabilities Current Assets 220900 Current Liabilities ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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