Answered: Consider the following balance sheet…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 23MCQ

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Question

Consider the following balance sheet for Go The Distance Trading Cards. Sales were $1,200,000 in the past year.

Go The Distance Trading Cards Balance Sheet, 2013:

Assets $

Current Assets $74,630.00

Net fixed Assets (Net PPE) $224,900.00

Total Assets $299,530.00

Liabilities and Shareholder Equity

Current Liabilities $43,510.00

Long-term liabilities (Long term debt) $93,200.00

Total Liabilities $136,710.00

Shareholder equity $162,820.00

Total Liabilities and Shareholder Equity $299,530.00

What is the debt-to-asset ratio for this firm?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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