Flynn Plastics Company reports the following data in its September 30, 2015, financial statements: Gross sales $225 000 Current assets $50 000 Long-term assets $130 000 Current liabilities $33 000 Long-term liabilities $52 000 Net income $11 250 (a) Compute the owners’ equity. (b) Compute the current ratio. (c) Compute the debt-to-equity ratio.
Flynn Plastics Company reports the following data in its September 30, 2015, financial statements: Gross sales $225 000 Current assets $50 000 Long-term assets $130 000 Current liabilities $33 000 Long-term liabilities $52 000 Net income $11 250 (a) Compute the owners’ equity. (b) Compute the current ratio. (c) Compute the debt-to-equity ratio.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 53CE: Profitability Ratios The following data came from the financial statements of Israel Company:...
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Flynn Plastics Company reports the following data in its September 30, 2015, financial statements:
- Gross sales $225 000
- Current assets $50 000
- Long-term assets $130 000
- Current liabilities $33 000
- Long-term liabilities $52 000
- Net income $11 250
(a) Compute the owners’ equity.
(b) Compute the current ratio.
(c) Compute the debt-to-equity ratio.
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