The balance sheet of Lamont Bros. follow: (a) What portions of Lamont's assets were provided by debt,

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The balance sheet of Lamont Bros. follow:


ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY S 85,000 315,000 S 52,000 35,000 50,000 80,000 Current assets Noncurrent ass


(a) What portions of Lamont's assets were provided by debt, contributed capital, and earned capital? Reduce contributed capital by the cost of the treasury stock.
(b) Compute the company's debt/equity ration if the preferred stock issuance was classified as a long-term debt.
(c) In most states, to what dollar amount of dividends would the company be limited?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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