Given the following data: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $128,250 $120,000 Total stockholders' equity 95,000 80,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to two decimal places. Liabilities to Stockholders' Equity Ratio Dec. 31, Year 2 Dec. 31, Year 1 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

Given the following data: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $128,250 $120,000 Total stockholders' equity 95,000 80,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to two decimal places. Liabilities to Stockholders' Equity Ratio Dec. 31, Year 2 Dec. 31, Year 1 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

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 table for a period of six years. Returns Year Large-Company Stocks 1973 1974 1975 1976 1977 1978 -14.69% -26.47 37.23 23.93 -7.16 6.57 U.S. Treasury Bills 6.93% 8.00 5.80 5.08 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. Note: Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. 5.12 7.18 b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. Note: Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the arithmetic average risk premium over this period? a. Large company stock T-bills b. Large company stock T-bills Note: A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and…
Item Prior year Current year Accounts payable 8,109.00 7,758.00 Accounts receivable 6,059.00 6,782.00 Accruals 1,036.00 1,609.00 Cash ??? ??? Common Stock 11,891.00 11,189.00 COGS 12,683.00 18,018.00 Current portion long-term debt 4,980.00 4,993.00 Depreciation expense 2,500 2,813.00 Interest expense 733 417 Inventories 4,192.00 4,777.00 Long-term debt 13,329.00 13,523.00 Net fixed assets 50,636.00 54,376.00 Notes payable 4,329.00 9,999.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,278.00 29,801.00 Sales 35,119 47,221.00 Taxes 2,084 2,775 What is the firm's total change in cash from the prior year to the current year?
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