Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand $ 15,000 Total Current Assets 130,000 Total Fixed Assets 290,000 Total Assets $420,000 Accounts Payable $ 20,000 Overdraft Loan Payable 0 1-Year Bank Loan Payable 5,000 Current Portion of Long-Term Bank Loans 22,000 Total Current Liabilities 47,000 Long-Term Bank Loans Outstanding 153,000 Total Liabilities 200,000 Shareholder Equity: Year 11 Balance Year 12 Change Common Stock 20,000 0 20,000 Additional Capital 120,000 0 120,000 Retained Earnings 60,000 20,000 80,000 Total Shareholder Equity 200,000 +20,000 220,000 Total Liabilities and Shareholder Equity $420,000 Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is 0.40. 0.45. 0.46. 0.42. 0.48.
Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand $ 15,000 Total Current Assets 130,000 Total Fixed Assets 290,000 Total Assets $420,000 Accounts Payable $ 20,000 Overdraft Loan Payable 0 1-Year Bank Loan Payable 5,000 Current Portion of Long-Term Bank Loans 22,000 Total Current Liabilities 47,000 Long-Term Bank Loans Outstanding 153,000 Total Liabilities 200,000 Shareholder Equity: Year 11 Balance Year 12 Change Common Stock 20,000 0 20,000 Additional Capital 120,000 0 120,000 Retained Earnings 60,000 20,000 80,000 Total Shareholder Equity 200,000 +20,000 220,000 Total Liabilities and Shareholder Equity $420,000 Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is 0.40. 0.45. 0.46. 0.42. 0.48.
Related questions
Question
Given the following Year 12 balance sheet data for a footwear company:
| Balance Sheet Data | |||
|---|---|---|---|
| Cash on Hand | $ 15,000 | ||
| Total Current Assets | 130,000 | ||
| Total Fixed Assets | 290,000 | ||
| Total Assets | $420,000 | ||
| Accounts Payable | $ 20,000 | ||
| Overdraft Loan Payable | 0 | ||
| 1-Year Bank Loan Payable | 5,000 | ||
| Current Portion of Long-Term Bank Loans | 22,000 | ||
| Total Current Liabilities | 47,000 | ||
| Long-Term Bank Loans Outstanding | 153,000 | ||
| Total Liabilities | 200,000 | ||
| Shareholder Equity: | Year 11 Balance |
Year 12 Change |
|
| Common Stock | 20,000 | 0 | 20,000 |
| Additional Capital | 120,000 | 0 | 120,000 |
| 60,000 | 20,000 | 80,000 | |
| Total Shareholder Equity | 200,000 | +20,000 | 220,000 |
| Total Liabilities and Shareholder Equity | $420,000 |
Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is
0.40.
0.45.
0.46.
0.42.
0.48.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.