Use the following information given by Aysid Wash and Wear Supplies to compute for the Solvency Ratios (Debt to Asset Ratio, Debt to Equity Ratio, and Equity Ratio) Cash $400,000 Sales $1,500,000 Accounts Receivable 500,000 Cost of Goods Sold 700,000 Inventory 550,000 Gross Profit 800,000 Equipment 850,000 Operating Exponses 300,000 Total Assets $2,300,000 Operating Income 500,000 Accounts Payable 600,000 interest Expense 500,000 Notes Payable 400,000 Net Income P $450,000 Owner, Capital 1,300,000 Total Liabilities and equily $ 2,300,000 1. Deb to Asset Ratio 2. Debt to Equity Ratio 3. Equity Ration
Use the following information given by Aysid Wash and Wear Supplies to compute for the Solvency Ratios (Debt to Asset Ratio, Debt to Equity Ratio, and Equity Ratio) Cash $400,000 Sales $1,500,000 Accounts Receivable 500,000 Cost of Goods Sold 700,000 Inventory 550,000 Gross Profit 800,000 Equipment 850,000 Operating Exponses 300,000 Total Assets $2,300,000 Operating Income 500,000 Accounts Payable 600,000 interest Expense 500,000 Notes Payable 400,000 Net Income P $450,000 Owner, Capital 1,300,000 Total Liabilities and equily $ 2,300,000 1. Deb to Asset Ratio 2. Debt to Equity Ratio 3. Equity Ration
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Use the following information given by Aysid Wash and Wear Supplies to compute for the Solvency Ratios (Debt to Asset Ratio, Debt to Equity Ratio, and Equity Ratio)
Cash | $400,000 | Sales | $1,500,000 |
Accounts Receivable | 500,000 | Cost of Goods Sold | 700,000 |
Inventory | 550,000 | Gross Profit | 800,000 |
Equipment | 850,000 | Operating Exponses | 300,000 |
Total Assets | $2,300,000 | Operating Income | 500,000 |
Accounts Payable | 600,000 | interest Expense | 500,000 |
Notes Payable | 400,000 | Net Income P | $450,000 |
Owner, Capital | 1,300,000 | ||
Total Liabilities and equily | $ 2,300,000 |
1. Deb to Asset Ratio
2. Debt to Equity Ratio
3. Equity Ration
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