Use the table for the questions below. Consider the following balance sheets: PharmPic DosageDoc Reported Dec. 31, 2020 2021 2020 2021 Assets Cash 224,224 200,400 301,540 230,876 Accounts Receivable 129,000 118,125 130,316 110,345 Inventories 154,890 171,147 184,717 186,000 Total Current Assets 508,114 489,672 616,573 527,221 Net Property Plant & Equipt. 421,162 431,795 456,462 460,000 Patents and Trademarks 212,770 210,110 201,348 199,990 Total Assets 1,142,046 1,131,577 1,274,383 1,187,211 Liabilities and Stockholders' Equity: Short Term Borrowings (Bank) 257,000 264,023 302,453 270,000 Accounts Payable 212,900 209,000 267,004 225,000 Current Portion of LTD (Interest Bearing Debt) 39,532 29,081 32,611 46,048 Total Current Liabilities 509,432 502,104 602,068 541,048 Long Term Debt (Interest Bearing Debt) 290,000 290,000 290,000 290,000 Common Stock Equity(150,000 shares) 228,409 226,315 254,877 237442 Preferred Stock Equity (100,000 shares) 114205 113158 127438 118721 Total Liabs. & Stkhldrs' Eq. 1142046 1131577 1274383 1187211 ) The difference in the debt to equity ratio between PharmPic and DosageDoc in 2021 is closest to: (using Total Debt and Market Values) A) 0.0163 B) 0.0219 C) 0.0382 D) 0.0430 E) None of the above
Use the table for the questions below.
Consider the following balance sheets:
|
PharmPic |
DosageDoc |
||||
|
Reported Dec. 31, |
2020 |
2021 |
2020 |
2021 |
|
|
Assets |
|||||
|
Cash |
224,224 |
200,400 |
301,540 |
230,876 |
|
|
Accounts Receivable |
129,000 |
118,125 |
130,316 |
110,345 |
|
|
Inventories |
154,890 |
171,147 |
184,717 |
186,000 |
|
|
Total Current Assets |
508,114 |
489,672 |
616,573 |
527,221 |
|
|
Net Property Plant & Equipt. |
421,162 |
431,795 |
456,462 |
460,000 |
|
|
Patents and Trademarks |
212,770 |
210,110 |
201,348 |
199,990 |
|
|
Total Assets |
1,142,046 |
1,131,577 |
1,274,383 |
1,187,211 |
|
|
Liabilities and |
|||||
|
Short Term Borrowings (Bank) |
257,000 |
264,023 |
302,453 |
270,000 |
|
|
Accounts Payable |
212,900 |
209,000 |
267,004 |
225,000 |
|
|
Current Portion of LTD (Interest Bearing Debt) |
39,532 |
29,081 |
32,611 |
46,048 |
|
|
Total Current Liabilities |
509,432 |
502,104 |
602,068 |
541,048 |
|
|
Long Term Debt (Interest Bearing Debt) |
290,000 |
290,000 |
290,000 |
290,000 |
|
|
Common Stock Equity(150,000 shares) |
228,409 |
226,315 |
254,877 |
237442 |
|
|
|
114205 |
113158 |
127438 |
118721 |
|
|
Total Liabs. & Stkhldrs' Eq. |
1142046 |
1131577 |
1274383 |
1187211 |
) The difference in the debt to equity ratio between PharmPic and DosageDoc in 2021 is closest to: (using Total Debt and Market Values)
- A) 0.0163
- B) 0.0219
- C) 0.0382
- D) 0.0430
- E) None of the above
Total equity of pharm pic
=226315 +113158
= 339473
Debt equity ratio of pharm pic
= 290000 ÷ 339473
=0.85426
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