FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Long-term solvency ratios
Total debt ratio
Debt-equity ratio
Equity multiplier
Times interest earned ratio
cash coverage ratio
Profitability ratios
Profit margin
ROA
ROE
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Transcribed Image Text:Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned ratio cash coverage ratio Profitability ratios Profit margin ROA ROE
Balance Sheets
Liabilities and Owners'
Assets
Equity
2020
2021
2020
2021
Current Assets
Current liabilities
$
32,653 $
$
16,911 $
2$
34,495 $
$
84,059 $
Accounts payable
Notes payable
$
34,886 $
$
18,058 $
2$
18,871 $
$
71,815 $
$
110,000 $
Cash
39,350
44,285
Accounts receivable
28,877
16,848
Inventory
44,336
Other
25,619
Total
112,563
Total
86,752
Long-term debt
Owners' equity
Common stock and pai $
Accumulated retained $
140,000
Fixed assets
Net plant and equipment $
441,099 $
55,000 $
288,343 $
502,872
55,000
333,683
Total
$
343,343 $
388,683
Total liabilities and
Total assets
525,158 $
615,435
owners' equity
24
525,158 $
615,435
2019 Income Statement
Sales
$
531,750
Costs of goods sold
Depreciation
377,294
$
46,686
Earnings before interest
and taxes
107,770
Interest paid
20,650
Taxable income
87,120
Texes (25%)
21,780
Net income
$
65,340
Dividends
20,000
Retained earnings
45,340
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Transcribed Image Text:Balance Sheets Liabilities and Owners' Assets Equity 2020 2021 2020 2021 Current Assets Current liabilities $ 32,653 $ $ 16,911 $ 2$ 34,495 $ $ 84,059 $ Accounts payable Notes payable $ 34,886 $ $ 18,058 $ 2$ 18,871 $ $ 71,815 $ $ 110,000 $ Cash 39,350 44,285 Accounts receivable 28,877 16,848 Inventory 44,336 Other 25,619 Total 112,563 Total 86,752 Long-term debt Owners' equity Common stock and pai $ Accumulated retained $ 140,000 Fixed assets Net plant and equipment $ 441,099 $ 55,000 $ 288,343 $ 502,872 55,000 333,683 Total $ 343,343 $ 388,683 Total liabilities and Total assets 525,158 $ 615,435 owners' equity 24 525,158 $ 615,435 2019 Income Statement Sales $ 531,750 Costs of goods sold Depreciation 377,294 $ 46,686 Earnings before interest and taxes 107,770 Interest paid 20,650 Taxable income 87,120 Texes (25%) 21,780 Net income $ 65,340 Dividends 20,000 Retained earnings 45,340
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