What is the debt-to-asset ratio of Company B in 2022? What is the debt-to-equity ratio of Company A in 2021 Income StatementDec. 31, 2022Company ACompany BP850,000550,000SalesP1,350,000895,000Less: Cost of Goods SoldPurchases consisting 60% of COGS for both companiesGross Profit300,000455,000Less: ExpensesUtilities Expense55,00090,000Salaries Expense70,000115,000Advertising ExpenseInsurance Expense1,0002,0001,0002,000Depreciation ExpenseTaxable Income83,00090,00085,000161,000Income Tax (30%)27,00063,00048,300Net Income112,700 Statement of Financial PositionCompany ACompany BCurrent Assets2021 (Beg)2022 (End)2021 (Beg)2022 (End)P115,000101,000CashP42,000P58,000P75,000Marketable Securities36,00045,00025,00075,00032,00085,00055,000125,000200,00024,00024,00095,000150,000Accounts ReceivableInventoryPrepaid InsurancePrepaid AdvertisingNoncurrent Assets (all in book value)12,00011,00011,00022,00022,00012,000Furniture and Fixtures240,000192,000500,000450,000Delivery Van245,000210,000350,000315,000Current LiabilitiesNotes PayableAccounts Payable35,00032,000120,000100,00054,00060,000140,000125,000Noncurrent LiabilitiesBonds PayableShareholders' Equity220,000180,000550,000520,000Common Stock295,000295,000350,000350,000Retained Earnings90,000100,000163,000175,000

Debt to asset ratio refers to the ratio of total debt of a company to its total assets which is…

Income Statement Dec. 31, 2022 Company A Company B Sales P850,000 P1,350,000 Less: Cost of Goods Sold 550,000 895,000 Purchases consisting 60% of COGS for both companies Gross Profit 300,000 455,000 Less: Expenses Utilities Expense 55,000 90,000 Salaries Expense 70,000 115,000 Advertising Expense Insurance Expense 2,000 1,000 1,000 2,000 Depreciation Expense Taxable Income 83,000 90,000 85,000 161,000 Income Tax (30%) 27,000 48,300 112,700 Net Income 63,000

Income Statement Dec. 31, 2022 Company A Company B Sales P850,000 P1,350,000 Less: Cost of Goods Sold 550,000 895,000 Purchases consisting 60% of COGS for both companies Gross Profit 300,000 455,000 Less: Expenses Utilities Expense 55,000 90,000 Salaries Expense 70,000 115,000 Advertising Expense Insurance Expense 2,000 1,000 1,000 2,000 Depreciation Expense Taxable Income 83,000 90,000 85,000 161,000 Income Tax (30%) 27,000 48,300 112,700 Net Income 63,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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