FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Use the following balance sheet and income statement information to calculate the Debt to total assets. Current assets $ 8,000 Net income $ 9,000Current liabilities 4,000 Stockholders equity 27,000Average assets 40,000 Total liabilities 5,000Total assets 30,000 Average common shares outstanding was 10,000 Group of answer choices 75 %. 12.5 %. 20 %. 16.7 %.arrow_forwardOn the basis of this information, calculate as many liquidity, activity, leverage, profitzit and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.arrow_forwardXitin Inc. has the following balance sheet. How much total operating capital does the firm have? Cash $ 63.00 Accounts payable $ 515.00 Short-term investments 117.00 Accruals 281.00 Accounts receivable 246.00 Notes payable 122.00 Inventory 392.00 Current liabilities $918.00 Current assets $818.00 Long-term debt 246.00 Gross fixed assets $647.00 Common stock 56.00 Accumulated depreciation 77.00 Retained earnings Net fixed assets Total assets $475 O $470 $552 $665 O $670 168.00 $570.00 Total common equity $224.00 $1,388.00 Total liab. & equity $1,388.00arrow_forward
- What is the total stockholders equity based on the following account balances? Common stock $318,200 Paid in capital excess of par $58,300 Retained earnings $161,360 Treasury stock $21,200arrow_forwardThe following extracts relate to MN Co for 20X8 and 20X7: 20X8 20X7 Issued share capital 50,000 50,000 Share premium 5,500 5,500 Retained earnings 34,500 24,500 90,000 80,000 Non-current liabilities 10% Bank loan 4,500 5,600 Current liabilities Bank overdraft 3,000 500 Calculate the debt/equity ratio of MN Co for 20X8 and 20X7. 20X8 20X7arrow_forwardHelp be cleararrow_forward
- Given the following data for the Vaughn Manufacturing: Current liabilities $550 Long-term debt 510 Common stock 744 Retained earnings 1296 Total liabilities & stockholders’ equity $3100 How would common stock appear on a common size balance sheet? 26% 16% 24% 58%arrow_forwardThe balance sheet for Shankland Corporation follows: 000'009 $ 000006 Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings 000 0000 000 00 000 009' 000 006 Total liabilities and stockholders' equity 000'00s Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratioarrow_forwardSECOND BANK PROVIDES THE FOLLOWING EQUITY DATA: REGULATORY EQUITY RELATED ACCOUNTS PREFERRED STOCKS 1,000.00 COMMON STOCKS 4,000.00 RETAINED EARNINGS 3,000.00 CAPITAL NOTES 1,000.00 SUBORDINATED DEBT 4,000.00 RESERVE FOR LOAN LOSSES 800.00 RISK WEIGHTED ASSETS 60,000.00 How much is Tier 2? Select one: O 56,088 $6,038 O $6,475 O $13,701 $6,125 O S7,226 NOT ENOUGH DATA TO ANSWERarrow_forward
- According to the information in the table below, which of the following shows Debt/Equity (D/E) ratio and Interest Coverage ratio (ICR) correctly. Long Term Debt 50,000 EBIT(Operating profit) 75,000 Shareholders' Equity 40,000 Interest expenses 15,000 Total Assets 140,000 Select one: a. D/E= 1.25% and ICR=5% b. D/E=1.25 and ICR=3.3 times c. D/E=1.25 and ICR=5 times d. D/E=0.80 and ICR=2.5 timesarrow_forwardThe following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 350,000 Current yield to maturity on debt 9.00 % Number of shares of common stock 12,500 Price per share $ 55 Book value per share $ 30 Expected rate of return on stock 18.00 % Calculate the company cost of capitalarrow_forwardFrom the following balance sheet of Sohel & Co Ltd as at 31st March 2013 and also comment on the ratios. You may use online sources to write about the ratios. Liabilities Amount (RO) Assets Amount (RO) Equity shares capital 6%Preference share capital 7%Debentures 8% Public Debt Bank over draft Creditors Outstanding expenses Proposed dividend Reserves Provision for taxation Net Profit 100,000 100,000 40,000 20,000 40,000 60,000 7,000 10,000 150,000 20,000 20,000 567,000 Cash in hands Cash at bank Bills Receivable Short term investment Debtors Stocks Furniture Machinery Land and Building Good will Preliminary Expenses 3,000 9,000 30,000 20,000 70,000 40,000 30,000 100,000 220,000 35,000 10,000 567,000 Net Sales - 200000 d) Return on Equityarrow_forward
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