The classified balance sheet for Tipke, Inc. as of December 31, 2014, is presented next. Requirements 1.
Question:
Requirements
1. Calculate Tipkes debt ratio as of December 31, 2014.
2. What percentage of Tipkes assets belongs to the shareholders?
3. Would you be willing to extend credit to Tipke, Inc.? Why or why not?
Transcribed Image Text:
Tipke, Inc. Balance Sheet December 31, 2014 Current Assets: Cash Accounts Receivable Supplies Prepaid Rent Total Current Assets Current Liabilities: 17,500 Accounts Payable 5,400 Salary Payable $ 1,100 2,400 650 10,000 14.150 400 Unearned Service Revenue 3,600 Note Payable 26,900 Total Current Liabilities Long-Term Debt Fixed Assets Land Equipment Less Accumulated 10,000 140,000 55,000 Mortgage Note Payable Bonds Payable Total Long-Term Debt 150,000 38,000 Depreciation, Equipment8,000 30,000 Building Less Accumulated Shareholders' Equity: Common Shares Retained Earnings 225,000 20,000 122,750 142,750 Depreciation, Building 30,000 195,000 Total Fixed Assets Total Assets Total Shareholders' Equity 280,000 Total Liabilities and 306900Shareholders' Equity $306,900
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Req 1 Debt Total Liabilities 164150 535 ratio Total ...View the full answer
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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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