(In thousands) Year 2 Year 1 Cash $ 10,300 $ 12,800 Accounts receivable 14,700 13,750 Inventory 14,200 16,700 Marketable securities 8,700 12,950 Equipment, net 90.780 84.564 Total assets $138.680 $140.764 $ 14,000 $ 11,000 5,000 Accounts payable 9,650 Income taxes payable Current portion of long-term debt Long-term obligations Common stock 12,250 6,500 54,780 49,764 16,000 27,500 Retained earnings 32,000 $138.680 41,000 Total liabilities & shareholders' equity $140.764 Sales $137,400 $147,000 48,000 Cost of goods sold Depreciation expense Other operating expenses 42,000 12,800 14,700 24,500 24,000 Interest expense 2,695 3,190 Income before taxes 49,405 63,110 Income taxes expense 17,400 22,200 Net income $ 32.005 $ 40,910
(In thousands) Year 2 Year 1 Cash $ 10,300 $ 12,800 Accounts receivable 14,700 13,750 Inventory 14,200 16,700 Marketable securities 8,700 12,950 Equipment, net 90.780 84.564 Total assets $138.680 $140.764 $ 14,000 $ 11,000 5,000 Accounts payable 9,650 Income taxes payable Current portion of long-term debt Long-term obligations Common stock 12,250 6,500 54,780 49,764 16,000 27,500 Retained earnings 32,000 $138.680 41,000 Total liabilities & shareholders' equity $140.764 Sales $137,400 $147,000 48,000 Cost of goods sold Depreciation expense Other operating expenses 42,000 12,800 14,700 24,500 24,000 Interest expense 2,695 3,190 Income before taxes 49,405 63,110 Income taxes expense 17,400 22,200 Net income $ 32.005 $ 40,910
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 52P
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Presented below are the consolidated balance sheets and income statements for Cape Town Enterprises Company, Inc.:
Compute long-term debt to total assets, long-term debt to shareholders’ equity, and interest coverage ratio for both years.
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