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Current ratio = 2.6 timesProfit margin = 10%Sales = $1,270mROE = 10%Long-term debt to Long-term debt and equity = 60%Use the above information to complete the balance sheet below. (Enter your answers in millions.)   Current assets?millionCurrent liabilities$280millionFixed assets?millionLong-term debt?million   Stockholders’ equity?millionTotal assets?millionTotal liabilities and equity?million

Question

Current ratio = 2.6 times
Profit margin = 10%
Sales = $1,270m
ROE = 10%
Long-term debt to Long-term debt and equity = 60%

Use the above information to complete the balance sheet below. (Enter your answers in millions.)

 
 
 
Current assets ? million Current liabilities $280 million
Fixed assets ? million Long-term debt ? million
      Stockholders’ equity ? million
Total assets ? million Total liabilities and equity ? million

 

check_circleAnswer
Step 1

Calculate the current assets as follows:

Current assets
Current ratioCurrent liabilities
2.6 Current as sets
$280, 000, 000
Current assets 2.6x$280,000,000
=S728, 000,000 or $728 million
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Current assets Current ratioCurrent liabilities 2.6 Current as sets $280, 000, 000 Current assets 2.6x$280,000,000 =S728, 000,000 or $728 million

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Step 2

Calculate the net income as follows:

Profit marginNet income
Sales
10% Net income
S1,270,000,000
Net income
$1,270,000, 000x 10%
=S127,000,000 or $127 million
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Image Transcriptionclose

Profit marginNet income Sales 10% Net income S1,270,000,000 Net income $1,270,000, 000x 10% =S127,000,000 or $127 million

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Step 3

Calculate the shareholder’s eq...

Net income
ROE
Shareholder's equity
S127,000,000
10%=
Shareholder's equity
Shareholder's equity - S127,000, 000
10%
S1,270,000,000 or S1,270 million
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Net income ROE Shareholder's equity S127,000,000 10%= Shareholder's equity Shareholder's equity - S127,000, 000 10% S1,270,000,000 or S1,270 million

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