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Consider the following worksheet with information extracted from a financial statement: 2018                       Assets                     Liabilities                             Equity Reported (P)           500 000                   100 000                               400 000 An analyst makes an adjustment that decreases goodwill by P100 000 and equity (profit) by P100 000. This goodwill was acquired on consolidation, hence there are no tax adjustments. Using the worksheet approach, what would be the change in the debt to assets ratio?

Consider the following worksheet with information extracted from a financial statement: 2018                       Assets                     Liabilities                             Equity Reported (P)           500 000                   100 000                               400 000 An analyst makes an adjustment that decreases goodwill by P100 000 and equity (profit) by P100 000. This goodwill was acquired on consolidation, hence there are no tax adjustments. Using the worksheet approach, what would be the change in the debt to assets ratio?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consider the following worksheet with information extracted from a financial statement:

2018                       Assets                     Liabilities                             Equity
Reported (P)           500 000                   100 000                               400 000

An analyst makes an adjustment that decreases goodwill by P100 000 and equity (profit) by P100 000. This goodwill was acquired on consolidation, hence there are no tax adjustments. Using the worksheet approach, what would be the change in the debt to assets ratio?

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