FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Consider the following information for James Inc, for the Year 2014:
Assets:
2014
Cash
$57.100
Accounts receivable
$140,400
Inventory
$185,400
Land
$90,000
PP&E
$225,000
Accumulated depreciation
($117,000)
Total assets
$580,900
Liabilities:
Accounts payable
$151,200
Accrued expenses
$36,000
Notes payable
$53,500
Total liabilities
$240,700
Stockholders equity:
Common stock
$18,000
Additional paid-in capital
$115,200
Beginning retained earnings $145,800
Net income
$97.200
Dividends
$36,000
Ending retained earnings
$207,000
Total stockholders' equity
$340,200
Total liabilities and equity
$580,900
A. Calculate James' Debt-to-Equity Ratio.
B. Calculate James' Debt Ratio.
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Transcribed Image Text:Consider the following information for James Inc, for the Year 2014: Assets: 2014 Cash $57.100 Accounts receivable $140,400 Inventory $185,400 Land $90,000 PP&E $225,000 Accumulated depreciation ($117,000) Total assets $580,900 Liabilities: Accounts payable $151,200 Accrued expenses $36,000 Notes payable $53,500 Total liabilities $240,700 Stockholders equity: Common stock $18,000 Additional paid-in capital $115,200 Beginning retained earnings $145,800 Net income $97.200 Dividends $36,000 Ending retained earnings $207,000 Total stockholders' equity $340,200 Total liabilities and equity $580,900 A. Calculate James' Debt-to-Equity Ratio. B. Calculate James' Debt Ratio.
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