The classified balance sheet for Thorn, Inc. as of December 31,2014, is presented next. Requirements 1. Calculate
Question:
Requirements
1. Calculate Thorns debt ratio as of December 31, 2014.
2. What percentage of Thorns assets belong to the shareholders?
3. Would you be willing to extend credit to Thorn, Inc.? Why or why not?
Transcribed Image Text:
Thorn, Inc. Balance Sheet December 31, 2014 ASSETS LIABILITIES Current Assets: Cash Accounts Receivable Supplies Prepaid Rent Total Current Assets Current Liabilities: 6,600 Accounts Payable $ 10,200 1,900 17,700 10,000 39,800 10,100 Salary Payable 1,300 Unearned Service Revenue 2,800 Note Payable 20,800 Fixed Assets: Land Equipment Less: Accumulated Total Curent Liabilities Long-Term Debt: Bonds Payable 30,000 110,000 140,000 55,000 Mortgage Note Payable $ 40,000 Total Long-Term Debt Depreciation, Equipment 14,000 26,000 Building 225,000 SHAREHOLDERS' EQUITY Less: Accumulated Total Fixed Assets Total Assets 8,000 49,000 57,000 Common Shares Depreciation, Building 90,000 135,000 Retained Earnings 216,000 Total Shareholders' Equity Total Liabilities and 236,800Shareholders' Equity $236,800
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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